The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1928-01-02
BIGGEST STEPS
TOWARD WORLD
MART IN 1927
President Simmons Reviews
Years Activities of
Stock Exchange.
BY E. H. H. SIMMONS
President New York Stock Exchang


tiles market toward the position of
an international market has been
comparatively steady for several
years past, it remained for the
year just ending to witness the most
important steps in that direction
Chief among the developments of
this nature which stand out in the
annals of 1927 is the decision of the
New York Stock Exchange to ex-
tend its facilities for marketing of
stocks of foreign corporations, and
thereby to provide investors in
America with the machinery for a
wider and more comprehensive in
veStment Of their surplus funds in
foreign enterprises.
The action of the exchange hav-
ing been determined upon but
recently, 1t is of course entirely too
early to expect any sizeable ad-
dition to the list of foreign stocks
admitted to trading on its floor.
Important Market
Ever since the war the New York
Stock Exchange has been an i'm
porUant capital market in the broad
est international sense, yet by far a
major proportion of its foreign list
ingS has been in the form of bonds
issued in terms of the dollar. AS a
great creditor nation with large
sums of money available for invest
ment in foreign enterprise, and
with the securities of alien corpora
lions finding their way more and
more rapidly into the hands of
American investors, the exchange
deemed it advisable to extend its
regulations so as to permit the in
cluSion on its list of those foreign
capital securities which were being
sold here and which could and
would meet its requirements.
The increase in the number and
value of foreign securities which
have sought a market in the United
States in recent years has been con-
siderable. On Oct. of this year,
there were listed on the New York
Stock Exchange foreign bonds, gov
eminent and corporate, to a total
face value of $5,35o,903,461 and a
market value of $4,946,274. OBS. an
increase of more than $641, 100000
since Jan. /, 1927. In other words,
the face value, as of Oct. l, of the
bonds Of other countries traded in
ON the New York Stock Exchange
represented approximately Is per
cent of the total bond liStings of
more than $37 100000. At the
same time the number of individual
foreign bond issues was 27l out of
total of 1,483-slightly more than
18 per cent.
Foreign Stocks
The number and value of foreign
stocks on the Exchange list is, OF
course, of vastly smaller percentage
than in the case of bonds. The lat
ter have been gravitating toward the
New York market more or less
steadily ever since the war, whereas
it is only within the last couple OF
months, with but a few exceptions,
that foreign stocks have been avail
able for listing here. At the be-
ginning of Oct. "a, capital issues
we're dealt in on the Exchange,
their market value aggregating
$738, 297, 1855 out of total stock listings
Of a value of $47,609, 636,595. This
compares with foreign stock list
ings at the beginning of the year OF
value of $613, 1874, 1873, an increase
of more than $l23,000,000.
In addition to the steps which
have been taken during the last year
ITO facilitate the distribution to
American investors of foreign secur-
tiles, the twelve months presented
other features and other problems to
the Exchange which make up an in
teresting record of effort and
achievement. There are probably
few if any years in the institutions
history, when so many records, some
of them of long years standing,
have been shattered. The total
volume Of business done in stocks by
members of the Exchange on its
floor, according to compilations
by the press, exceeded that of any
other year in its history.
Larger Funds
Continued prosperity throughout
the country. accompanied by a
steady accretion of investable sur
plus in the hands of the American
public. are, of course, in large meas
ure responsible for this growth.
With larger funds available on ev-
cry hand for investment and Specu-
lation in securities, interest in the
financial markets naturally broad
ened perceptibly. This growth has
created new problems for the au-
thorities Of the Stock Exchange to
solve, problems vitality concerned