The past few years have witnessed a remarkable expansion of credit in this country. The bank deposits increased about $3,500,000,000, and new stocks and bonds issued during the period probably reached a total of $10,000,000,000, while the total money in the country, paper and metallic, increased only about $500,000,000. In other words, for every dollar in money added to the general stock, bank deposits increased $7 and securities $20. It is not necessary, therefore, that money be available to absorb a new issue of securities. If there is room for them in this sea of credit, they may be launched and floated.

When a new issue of investment securities is made, it is generally set afloat as collateral to an expansion of credit by the banks which extend to the broker or bond dealer credit with which to carry the securities until a market is found for them among investors. The rapidity with which investors will absorb them, and the price paid for them, depend upon their desirability and the condition of the money market - or, more correctly, of the credit market.