chapter  58
1 Pages

THE CAPITAL MARKET

In the money market, transactions are concluded in the most liquid forms of loan capital, that is such as are acceptable for banking security and the discount business which we have described, especially the so-called Lombard transactions, whose details we need not go into. By means of foreign drafts or bills of exchange, the transactions in varieties of foreign money which they represent are also brought within the scope of the money market. In this market the supply comes from banks or individual bankers; the demand from such business men as enjoy credit with the former. The quasi-commercial market for drafts and other liquid loans is only loosely connected with the official money market; on the side both of the demand and of the supply it is differently constituted. The market of the usury business is wholly detached, if, indeed, this may be referred to as a market.