FOREIGN SECURITIES IN THE AMERICAN MONEY MARKET, 1914-1930.

The article discusses foreign securities in the U.S. money market from 1914-1930. At the outset of World War I the U.S. industrial sector was able to satisfy the production needs of the domestic economy. As a result there was a surplus of funds to invest in foreign securities. The disruption caused by the War on the foreign exchange market made borrowing on the U.S. markets a necessity for warring and neutral nations. The U.S.' banking system in the 1929 Depression era is based on intermittent lending based on the degree to which capital can be absorbed domestically.