of England--The great joint
stock banks--The discount market--Bills and trade

CHAPTER III

INVESTMENTS AND SECURITIES

Stock Exchange securities--Government and municipal loans--Machinery of
loan issue--Underwriting--The Prospectus--Sinking fund--Bonds and
coupons--Registered stocks--Companies' securities--Stock Exchange
dealings

CHAPTER IV

FINANCE AND TRADE

Why money goes abroad--Trade before finance--Prejudice in favour of home
investments--Prejudice against them--The reaction--Mexico and
Brazil--Neutral moneylenders and the war--Goods and services lent and
borrowed--The trade balance

CHAPTER V

THE BENEFITS OF INTERNATIONAL FINANCE

International finance and trade--Opening up the world--Exchange of
products--Finance as peacemaker--Popular delusions concerning
financiers--Financiers and the present war--The cases of Egypt and the
Transvaal--Diplomacy and finance

CHAPTER VI

THE EVILS OF INTERNATIONAL FINANCE

Anti-Semitic prejudice--The story of the Honduras loans--The problem to
be faced by issuing houses--Their moral obligations, responsibilities,
and difficulties--Bad finance and big profits--The public's
responsibility

CHAPTER VII

NATIONALISM AND FINANCE

Dangers of over-specialization--Analogy between State and
individual--Versatility of the savage--Specialization and
peace--Specialization and war--Should the export of capital be
regulated?

CHAPTER VIII

REMEDIES AND REGULATIONS

Regulation of issues by Stock Exchange Committee--Danger arising
therefrom--Difficulty of controlling capital--Best remedy is keener
appreciation by issuing houses, borrowers, and investors of evils of bad
finance--Candour in prospectuses--War as financial schoolmaster--War as
destroyer of capital--War as stimulator of productive activity

INDEX

INTERNATIONAL FINANCE

CHAPTER I

CAPITAL AND ITS REWARD

Finance, in the sense in which it will be used in this book, means the
machinery of money dealing. That is, the machinery by which money which
you and I save is put together and lent out to people who want to borrow
it. Finance becomes international when our money is lent to borrowers in
other countries, or when people in England, who want to start an
enterprise, get some or all of the money that they need, in order to do
so, from lenders oversea. The biggest borrowers of money, in most
countries, are the Governments, and so international finance is largely
concerned