The basis for the accumulation of money capital of the enterprise is. Capital accumulation: essence and types

Introduction

Accumulation money capital plays important role in market economy.
The very process of accumulation of money capital is preceded by the stage of its production. After money-capital has been created or produced, it must be divided into a part which is redirected into production and a part which is temporarily released. The latter, as a rule, is the summary cash enterprises and corporations accumulated in the loan capital market by credit and financial institutions and the securities market.

The emergence and circulation of capital represented in securities is closely related to the functioning of the real asset market, i.e. a market where goods are bought and sold. With the advent of securities (stock assets) there is, as it were, a splitting of capital. On the one hand, there is real capital, represented by production assets, on the other hand, its reflection in securities.

The emergence of this type of capital is associated with the development of the need to attract an increasing amount of credit resources due to the complication and expansion of commercial and production activities. Thus, the stock market historically begins to develop on the basis of loan capital, since the purchase of securities means nothing more than the transfer of part of the money capital to a loan.

The key task that the securities market must perform is, first of all, to provide conditions for attracting investments to enterprises, the access of these enterprises to cheaper, in comparison with bank loans capital

The securities market (stock market) is part of financial market
(along with the loan capital market, foreign exchange market and the gold market). The stock market trades specific financial instruments- securities.

Securities are documents prescribed form and details certifying property rights, the exercise or transfer of which is possible only upon presentation. These property rights in securities are due to the provision of money for a loan and for the creation of various enterprises, purchase and sale, pledge of property, etc. In this regard, securities give their owners the right to receive a fixed hike.
The capital invested in securities is called stock (fictitious). Securities are a special commodity that circulates on the market and reflects property relations. Securities can be bought, sold, assigned, pledged, stored, inherited, donated, exchanged. They can perform certain functions of money (means of payment, settlements). But unlike money, they cannot act as a universal equivalent.

Concept, goals, objectives and functions of the securities market

The purpose of the securities market is to accumulate financial resources and ensure the possibility of their redistribution by various market participants performing various transactions with securities, i.e. to carry out mediation in the movement of temporarily free funds from investors to issuers of securities. The objectives of the securities market are:

Mobilization of temporarily free financial resources for the implementation of specific investments;

Formation of a market infrastructure that meets international standards;

Development of the secondary market;

Activation of marketing research;

Transformation of property relations;

Perfection market mechanism and control systems;

Ensuring real control over stock capital based on state regulation;

Decrease investment risk;

Formation of portfolio strategies;

Development of pricing;

Forecasting of perspective directions of development.

The main functions of the securities market include:

The accounting function is manifested in the mandatory accounting in special lists
(registries) of all types of securities circulating on the market, registration of participants in the securities market, as well as fixing stock transactions executed by contracts of sale, pledge, trust, conversion, etc.

The control function involves monitoring compliance with the law by market participants.

The function of balancing supply and demand means ensuring the balance of supply and demand in the financial market by conducting transactions with securities.

The stimulating function is to motivate legal entities and individuals to become participants in the securities market. For example, by granting the right to participate in the management of the enterprise (shares), the right to receive income (interest on bonds, dividends on shares), the possibility of accumulating capital, or the right to become the owner of property (bonds).

The redistributive function consists in the redistribution (through the circulation of securities) of funds (capitals) between enterprises, the state and the population, industries and regions. When financing the deficit of the federal, regional, regional and local budgets through the issuance of state and municipal securities and their sale, the free financial resources of enterprises and the population are redistributed in favor of the state.

Regulatory function means regulation (through specific stock transactions) of various social processes. For example, by carrying out transactions with securities, the volume of money supply in circulation is regulated. The sale of government securities on the market reduces the money supply, and their purchase by the state, on the contrary, increases this volume.

The securities market as a tool market regulation plays an important role. To helper functions stock market include the use of securities in privatization, anti-crisis management, economic restructuring, stabilization monetary circulation, anti-inflation policy.

An efficiently functioning securities market performs an important macroeconomic function, contributing to the redistribution of investment resources, ensuring their concentration in the most profitable and promising sectors (enterprises, projects) and at the same time diverting financial resources from sectors that do not have clearly defined development prospects. Thus, the securities market is one of the few possible financial channels through which savings flow into investments. At the same time, the securities market provides investors with the opportunity to store and increase their savings.

Primary and secondary securities markets.

The primary securities market is the place where the primary issue and initial placement of securities takes place. The purpose of the primary market is the organization of the primary issue of securities and its placement. The tasks of the primary securities market include:

1) attracting temporarily free resources;

2) activation of the financial market;

3) decrease in inflation rates.

The primary market performs the following functions:

Organization of the issue of securities;

Placement of securities;

Accounting for securities;

Maintaining a balance of supply and demand

Definition market value valuable papers;

The secondary securities market is the most active part of the stock market, where most transactions with securities are carried out, with the exception of the primary issue and initial placement. The purpose of the secondary market is to provide real conditions for the purchase, sale and other transactions with securities after their initial placement.

The following main tasks can be distinguished investment activity in the securities market:

1) regulation investment flows. Through the securities market, in recent years, capital has been mainly transferred to industries that provide the highest return on investment;

2) ensuring the mass nature of the investment process.
Legal and individuals those who have the necessary funds can freely acquire securities;

3) reflection of ongoing and predicted changes in the political, socio-economic, foreign economic and other spheres of society through changes in stock indices;

4) determining the directions of the investment policy of enterprises by modeling various options investments in securities; .

5) formation of an industry and regional structure national economy by regulating investment flows. By purchasing securities of certain enterprises located in specific territories, the investor invests in their development. Enterprises whose securities are not in demand are unable to attract the necessary investments;

6) implementation of the state structural policy. By acquiring shares of especially important enterprises, financing their development, the state supports socially significant, priority sectors;

7) implementation of the state investment policy. Through the government securities market, the state affects the amount of money supply, maintains a balance state budget or regulate the size of his deficit,

Accumulation of money capital as the basis for the formation of fictitious capital

The accumulation of money capital plays an important role in the economy.
The very process of accumulation of money capital is preceded by the stage of its production. When money-capital has been created and is still in the sphere of production, it is, as it were, pure money-capital. Its transfer in the form of a loan to other areas of the economy means that it accepts a different shell - loan capital.

After the money-capital has been created or produced, it must be divided into a part which is redirected into production and a part which is temporarily released. The latter, as a rule, is the free cash of enterprises and corporations, accumulated in the loan capital market by financial institutions and the securities market.

Money capital and fictitious capital: theoretical aspects similarities and differences

Loan capital is money capital given by the owner as a loan to functioning enterprises and bearing interest, i.e. Loan capital should be considered directly as a special category of money capital, singled out as capital-property.

Conditions for the formation of loan capital also arise when a percentage of their investment in the economy is received on free funds that do not belong to the bank, but are only kept by it.
It is the amount of this interest that is the property. The accumulation of this interest causes an additional allocation of loan capital as property capital.

In a modern market economy, one of the main issuers of securities, as you know, is the state (most often represented by the treasury). All over the world, the centralized issuance of securities is used in a broad sense as an instrument of state regulation of the economy, and in a narrower sense - as a lever of influence on money circulation and management of the money supply, a means of non-emission coverage of the deficit of state and local budgets, a way to attract funds enterprises and the population to solve certain specific problems. A wealth of experience has been accumulated in modeling and issuing various financial government bonds that meet the needs and demands of various investors - potential investors in government securities. Commercial banks play a significant role in the distribution and circulation of government securities, acquiring and selling them on the stock markets. Such banks occupy one of the leading places among the holders of the securities in question (for example, in the United States in the late 80s, commercial banks were holders of federal government marketable securities in the amount of approximately $ 200 billion, which is about 10% of the total volume of outstanding papers). Even greater is the role of commercial banks as dealers through whose hands much a large number of government securities, rather than accumulated by them as holders.

Government securities are usually divided into market and non-market
- depending on whether they circulate on the free market (primary or secondary) or are not included in the secondary circulation on the stock exchanges and are freely returned to the issuer before their expiration date. The bulk of government securities are marketable.

In economically developed countries government securities play a significant role in financing public spending, maintaining liquidity banking system development of the economy as a whole. State budget expenditures that exceed revenues can also be financed by a loan taken by the state from the central or commercial banks. However, as world practice has shown, loans are rarely used for these purposes, since they require the state to pay high interest, which exceeds the cost of issuing securities. In addition, the banks themselves are interested in issuing short-term loans at higher interest rates. The issue of money to cover the costs of the state budget is also undesirable, since this leads to a breakdown in monetary circulation and inflation. Thus, the most acceptable option for financing state budget expenditures is the issuance of government securities. Traditionally, they are used to solve the following tasks:

Repayment of the current budget deficit. This necessity arises in connection with possible gaps between government revenues and expenditures: budget revenues usually fall on certain dates, and expenditures are distributed more early.

Repayment of previously placed loans. The need for the issue of government securities for this purpose also arises with a deficit-free state budget.

Smoothing fluctuations in the receipt of tax payments to the budget
(elimination of cash imbalance in the budget).

Providing commercial banks and other financial institutions with liquid and highly liquid reserve assets. In a number of countries, short-term government securities have been used for this purpose. By investing in government-issued debentures part of their resources, financial institutions receive income in the form of interest.

Financing of own programs of local authorities and capital-intensive projects, as well as attraction of funds to off-budget funds.

Government securities issued by the central government and local governments to raise funds are of two types: marketable securities and non-marketable government debt. Marketable securities are freely circulating and can be resold to other entities after their initial placement. These include: treasury bills, various medium-term bonds (notes) and long-term government debt. Non-marketable government debt is intended to be placed primarily among the public. They cannot freely pass from one owner to another. These securities are especially effective in the conditions of the development of the securities market.

The primary placement of government securities is carried out with the help of intermediaries. Among the latter, the dominant position is occupied by central banks, which not only organize the work of placing new loans, but in some cases also purchase large blocks of government debt obligations themselves. In some countries, these functions are performed by ministries of finance, and in most advanced economies, commercial and investment banks, banking houses.

The rate of government securities, as well as the rate of private stocks and bonds, is subject to constant fluctuations under the influence of changes in the loan interest and fluctuations in supply and demand for these securities. Thus, during times of difficulty in the money market, these securities fall in price because they are thrown into the market in masses in order to be sold in money.

In the post-war years, there was a clear downward trend market rates government papers. Their especially significant drop occurred during the last cyclical crises in 1969-1970. and in 1973-1975, as well as in the early 80s. In general, for these periods of time, the course government bonds in the US fell by 45%.

The increase in public debt required the governments of industrialized countries to carry out special measures aimed at maintaining the rate of government securities and carried out by ministries of finance and central banks. In order to constantly finance the state central bank, commercial banks and others financial institutions bought up government bonds and thereby maintained the relative stability of their exchange rate.

The huge size of the public debt left its mark on the functioning of the private credit system. In the post-war years, the nature of commercial bank deposits and check circulation changed. As a result of the purchase of government securities, part of the deposits becomes fictitious, the money supply is separated from the needs of production, and most of the newly issued banknotes are associated, as a rule, with the purchase and sale of securities. At the same time, it should be taken into account that a significant part of the state debt, represented by short-term bills, turns into deposits or cash and contributes to the development of inflation. This was one of important factors unwinding of the inflationary spiral in the USA and Western Europe in the 1970s and early 1980s, when the highest rate of inflation was noted. AT
In the United States, it reached an annualized rate of 12-13%, and in Western Europe it reached
20% or more. Thus, the increase in inflation rates is largely caused by the continuous growth of the budget deficit and public debt.

A large share of short-term debt increases the dependence of the government fiscal policy from the private capital market. On the one hand, the amount and terms of loans, the level of interest and the method of their placement are determined by the situation on the capital market, on the other hand, the government is often forced to resort to refinancing its short-term debt. Recently, there has been a clearer trend towards longer periods of rapid growth of public debt and shorter periods of its repayment, and the repayment of public debt has become both less regular and increasingly less significant in size.

For example, in the United States in the postwar years there have been qualitative changes in public debt. In order to attract funds from various industrial, credit and financial institutions and individuals, several types of government securities are used: market, non-market, special issues.

Marketable securities, which account for 2/3 of the total debt and which are freely sold and bought, are represented by treasury bills, notes and bonds.

Difficulties in the placement of government securities led to the issuance of non-marketable securities, consisting of savings bonds and tax savings notes. The latter can be presented for payment at any time at the request of the depositor. However, under the current conditions for early presentation, the interest is sharply reduced. The main purpose of issuing non-marketable securities is to attract the public's money savings.

In the countries of Western Europe and Japan, the degree of development and differentiation of government securities is somewhat lower than in the USA, Canada and England. Yes, in
France, although government bonds dominate the securities market over private stocks and bonds, the degree of their choice when buying is rather limited. Basically, two types of government bonds are quoted and sold on the market: treasury bonds and bills.

Thus, each country has its own specific structure of public debt, based on various types of government bonds.

In order to further mobilize the population's funds to finance and refinance the public debt, the governments of industrialized countries have repeatedly resorted to issuing "special loans" placed in state insurance and pension funds. These papers cannot be transferred to other persons and organizations, but can be presented for payment after one year from the date of their issue. Thus, another means has been found for forcibly withdrawing the savings of the population and financing with their help government expenditures of various kinds, including unproductive ones.

The most important feature of the debt structure in 60 -70-ies. was a sharp reduction in long-term and increase in short-term liabilities. This was one of the factors behind the increase in inflation. The main reason for the shift towards short-term debt was that in the face of economic difficulties, especially inflation, the private sector was very reluctant to purchase long-term government bonds. Credit and financial institutions and individual investors sought to return their funds provided to the state as quickly as possible. Due to the fact that the public debt was mostly short-term, the government, represented by the Ministry of Finance, was forced to place new bills of large amounts almost every month in order to refinance those papers that were maturing. At the same time, additional funds were also withdrawn to cover current budget deficits. These events indicate a further escalation of the debt problem at the government level and difficulties in the system of public finances.

The scale of the debt and its short-term nature testify to the strengthening of the contradictions of state regulation of the economy with the help of financial system: on the one hand, Western governments in their economic policy more and more rely on financing long-term expenses, on the other hand, they focus on covering deficits with the help of short term loans. However, this has its own logic, which is explained by the objective conditions that exist in the country.

Firstly, with the help of short-term loans, when refinancing them, it is possible to obtain the necessary funds more quickly. Secondly, in the face of falling confidence in government loans on the part of the business community and the population, the demand for long-term obligations is much lower than for short-term ones.

The problem of public debt has also worsened as a result of the loss of interest in government securities on the part of private credit and financial institutions that have long been major buyers government obligations. The highest proportion of acquisitions of government securities by these institutions, for example in the United States, falls on the period of the Second World War. High demand for government papers was explained by a number of factors operating in the conditions of the military conjuncture.
First of all, the demand of industrial capital for loans was weakly expressed, and the issue of new issues of private securities was small, since the structure and dynamics of production were determined mainly by military orders from the government. It, in turn, encouraged the investment of funds by financial institutions in government paper to cover the swollen wartime government spending.

In the post-war years, the massive renewal of fixed capital in industrialized countries led to high interest rates on private securities. As a result, overflow cash funds credit and financial institutions into shares and bonds of trading, industrial and transport corporations. Qualitative shifts in the placement of public debt over the long post-war period are confirmed by the fact that the share of the private credit system in the United States in the post-war years has noticeably decreased - from
50% in 1946 to 17% in 1990. However, this does not mean that credit and financial institutions and the private sector have stopped buying government paper altogether. Their interest (especially banks and corporations) is reduced to buying mainly short-term bonds, which are a kind of "liquid reserve".

It can be argued that the problem of public debt by the end of the twentieth century. only worsened, this is evidenced by the fact that before the central banks created the conditions for the placement of securities by changing the norms of reserves and reducing the cost of credit. Recently, they have been compelled to acquire a growing mass of these papers themselves, mainly by issuing money. As a result, the structure of the balance sheet of central reserve banks changed dramatically.
If in the prewar years gold and currency accounted for 81.6% of all assets and
13.1% on government securities, then by the end of the 90s. gold accounted for only about 10% of assets, and Treasury bonds over 75%., public debt further upsets the balance between income and expenditure.
This means that large amounts of money capital are withdrawn from the loan capital market, which could be used to accelerate the pace of economic growth. So the US government, in connection with a large budget deficit, constantly places its loans on the securities market. Small credit institutions(loan- savings associations, credit unions etc.), since the increased issue of government loans causes an outflow of resources from these institutions. Government spending is generally not offset by tax revenues and generates huge deficits hanging over the capital market.

In this regard, one more important feature of the relationship between the state and the loan capital market should be emphasized: the state not only borrows, but also provides loans and loans itself. However, the ratio between the demand and supply of the state for loan capital has always for the most part turned out to be in favor of demand, i.e. withdrawals of monetary funds from the capital market significantly exceed their provision by the state.

The constant increase in government spending forces the government to increase the demand for loan capital in order to support economic growth. Which leads to two negative consequences- the withdrawal of a large amount of money capital for non-productive purposes and an increase in the tax burden of the population. Thus, the private sector, represented by commercial and industrial corporations, is forced to reduce its demand in the loan capital market. As regards the second consequence, public debts are based on government revenue, which should cover annual interest and other payments, and therefore modern tax system has become a necessary addition to the system of public loans, the increase in public debt generates an increase in the tax burden.

The role and importance of government bonds in government financing

Functional aspects of the government securities market of developed countries include the following components (main functional components):

Mobilization of temporarily free funds of commercial banks, organizations, enterprises, non-bank credit financial institutions and the population. Concentration through government securities at the state level of financial resources contributes mainly to reducing the budget deficit;

Using Government Securities as an Active Regulator monetary relations, in particular, central banks on their basis form monetary policy, coordinate monetary circulation;

Ensuring the liquidity of the balance sheets of credit-financial institutions through the effective implementation of the potential inherent in government securities.

Target orientation of the potential of government securities, reflecting Foreign experience, covers:

Investing in state targeted programs for economic development;

Ensuring the liquidity of assets of commercial banks and other credit and financial institutions;

Covering the deficits of state and local budgets;

Repayment of debts on government loans.

Currently, in developed countries, government securities are the main sources of formation and sale of domestic government debt. Issues of government securities in unpaid domestic debt fluctuate in different countries from 20 to
90%, for example in Germany these values reach 40%, in the USA - 70%,
Great Britain - 90%.

Money Capital and Fictitious Capital

Loan capital is a specific toner that circulates on the loan capital market, as it is a carrier of use value that differs in types, terms, sizes, profitability of loans and securities, which is ultimately determined by supply and demand.

An analysis of money and loan capital allows us to determine the essence, role and functions of the loan capital market. In the process of its development, the loan capital market undergoes certain changes that are important from the point of view of analysis and the loan capital market, and all modern mechanism capital accumulation.

Like loan capital, the loan capital market is a historical category that appeared and developed in the conditions of commodity-money relations, turned into a special area economic relations economy, and with the development of this concept becomes more complicated and expands.

The increase in the accumulation of money capital under capitalism led to the development of the loan capital market, which is a sphere of movement of loan capital, carried out under the influence of supply and demand for it. The formation of the loan capital market contributed to the emergence of its forms that reflect the most general and essential properties of the movement of loan capital, its accumulation in the form of money capital and its transformation directly into loan capital.

Money capital is released in the process of reproduction, directed in the form of loan capital to the market, and then returned to the creditor (banks and other financial institutions).

The essence of the loan capital market does not change at all depending on what kind of money capital is used on it: own or someone else's, accumulated, i.e. it does not depend on whether the banker carries out his business only through equity or with the help of capital accumulated in his hands.

The loan capital market plays an extremely important role in the modern economic mechanism, especially in the industrialized countries of the West. It contributes to the growth of production and trade, the movement of capital within the country, the transformation of monetary savings into investments, the implementation of scientific and technological progress, and the renewal of fixed capital. In this sense, the market mediates the various phases of production, is a kind of support for the material sphere of production, from where it receives additional financial resources for your development.

Primarily economic role loan capital market lies in its ability to combine small disparate funds. As a rule, small sums in themselves cannot act as money capital. Combined into large sums, they form a powerful monetary potential. This allows the market to play an important role in the processes of concentration and centralization of production and capital. It provides an opportunity for industrialists, merchants and entrepreneurs to dispose, through the mediation of bankers and their institutions, of all the monetary savings of the whole society.

The main role of the loan capital market in the economy is the unification of scattered individual monetary capital and the savings of the population through the credit system and the securities market.

Features of capital accumulation in the form of securities

Considering the features of the accumulation of money capital on present stage, first of all, it is necessary to dwell on the forms of accumulation and identify a number of trends that have emerged in this area. The structure of the loan capital market consists mainly of two elements: credit and financial institutions and the securities market, which in turn is divided into over-the-counter turnover and the stock exchange.

Credit and financial institutions carry out operations with capital accumulated by the population, enterprises and the state. Accumulation in these institutions usually takes place in monetary form. Money capital accumulated in the form bank deposits, insurance and pension reserves, is used by them to provide loans and purchase securities.

The accumulation of monetary savings of the population is carried out through the direct sale of securities to the population and the accumulation of deposits, contributions, reserves in various financial institutions. Various segments of the population place their money savings in stocks and bonds of private firms and corporations, as well as in government securities. In the pre-war years, in the industrially developed capitalist countries, the purchase of securities was the most common form of accumulation of monetary savings, especially for the wealthy categories of the population.

In the first post-war decades, the role of accumulation in the form of securities was significantly reduced due to frequent fluctuations in stock and bond prices, as well as increased competition from financial institutions. At the same time, in the same period, the accumulation of savings through the credit system began to acquire increasing importance, which was carried out differentially by types of credit institutions: in commercial banks- banknotes, deposits on current accounts; in commercial and savings banks and specialized savings institutions - savings deposits; reserves in private life insurance companies and pension funds; state funds for social security and insurance; hoarding precious metals(gold Silver).

Various forms of accumulation of monetary savings of the population have a certain economic impact. In conditions when the issue of money exceeds the needs of the economy, the accumulation of savings in the form of cash and bank current accounts is a factor that increases inflation. An increase in the money supply leads, as a rule, to a depreciation of money and a decrease in the real incomes of the population. At the same time, the excessive accumulation of money among the population means a temporary refusal to consume, entailing a reduction consumer spending which in some cases negatively affects the rate of economic growth.

During the Second World War and in the first post-war years in most Western countries, due to the growth of inflationary tendencies, money and current accounts were the dominant form of monetary savings of the population. In subsequent years of relative stabilization of the economic situation and normalization in the system of monetary circulation, the importance of these forms of accumulation began to decrease, despite the absolute growth of the money supply in the hands of the population.

Savings deposits in banks and other credit institutions in the postwar years have become the most important source of accumulation of money capital. Due savings deposits private and state credit institutions financed investments in industry, other sectors of the economy, as well as government spending.
The inflow of cash savings into savings institutions was stimulated relatively a high percentage by deposits. In the postwar years in the industrially developed capitalist countries, it averaged 3-4% per annum, and for some types it took a long time. term deposits 5% and above. If in the first post-war years high level percent was due to inflation and insufficient supply of loan capital, then in the subsequent period it remained at the same level due to the growth of capital investments and the need for credit.

In the first post-war years in Germany, both the securities market and the stock market were essentially frozen. Their movement and development began only at the end of 1954 due to the intervention of the government and the introduction of tax and other benefits. high rates Growth of the German economy increased the accumulation of capital and contributed to the increase in fictitious capital. In 1965, the issue of all types of securities amounted to 17.8 billion marks, or 4.4% of net national product and 23% of gross capital investment in the country.
The nominal value of all fixed interest securities in circulation was DM 100 billion and their market value was DM 78 billion. At the same time, the mobilization of monetary savings into securities increased during the specified period. In the early 50s. investments of individuals in securities amounted to 100 million marks, and in the middle
In the 60s they already reached 6.9 billion marks, which amounted to 20% of all personal savings in Germany. This trend reflected the growing role of the securities market in the mobilization of money capital. At the same time, if in 50-60 years. bonds and mortgages prevailed in the structure of purchased securities, then by the mid-60s. the share of purchased shares increased sharply, which accounted for approximately 1/3 of the total volume of securities.

The main trends in the accumulation of money capital, and in particular through securities, indicate that in industrialized countries the main flows of movement of money capital go through the hands of the wealthy strata of the population, although recently it has been found that the accumulation of securities in the hands of the middle strata has increased. In England, as a result of the redistribution of taxes in favor of the wealthy from 1983 to
1986 the number of millionaires grew from 7 thousand to 20 thousand.

The securities market in the structure and mechanism of the loan capital market

Functionally and institutionally, the national loan capital market includes the operations of private financial institutions, government agencies, foreign institutions and the securities market, which in turn is divided into over-the-counter (primary) and exchange turnover, as well as the market through the counter - the "street" market. Primary over-the-counter turnover covers mainly bonds of new issues. Only shares are traded on the stock exchange, as well as a number of previously issued bonds, both private and public.

The state, represented by credit institutions, is not only a seller of securities, but also their buyer, thus participating in the redistribution of money capital. Operations of credit and financial institutions in the capital market are not always associated with the acquisition of securities, so their activities should not be identified with either exchange or over-the-counter turnover of fictitious capital. In some cases, they finance corporations without buying securities through direct lending. At the same time, both over-the-counter turnover and stock Exchange- these are areas where credit and financial institutions play an important role. In addition, foreign banking capital is increasingly invading national capital markets.

Constant mutual supply and demand for loan capital create a market for loan capital. The mechanism of its functioning should be understood as the accumulation, movement, distribution and redistribution of money capital under the influence of supply and demand, as well as existing interest rates.

The mechanism of the market, as a rule, is determined by the supply and demand of the acting market participants: private enterprises, the state and individuals. The activity of these subjects forms the level of interest rates and its fluctuation depending on market conditions: increased demand raises rates and reduces supply and, consequently, reduces the transformation of money capital into loan capital; on the contrary, the predominance of supply over demand lowers rates and increases the movement of loan capital from the market.

In conditions of a long-term imbalance between supply and demand under the influence of the instability of the economic situation, the indifference of loan capital to the sphere of its application is lost. He begins to invest on a selective basis, i.e. to where you can really get income in the form of interest.

A peculiar form of application of loan capital is a bill, since the market gives the character of an impersonal demand on the part of the lender, but not for income, as in a security, but for money.
Endorsement, banker's acceptance are the means to make the bill a demand on the market, and not on an individual person. Moreover, a promissory note can be, like securities (stocks and bonds), sold (accounted for) at any time.

In a market economy, when a strong and multi-stage credit system is developed, the social nature of the loan capital market is enhanced. In the money market, the entire loan capital as a single mass is constantly opposed to the functioning capital, and therefore the ratio between the supply of loan capital, on the one hand, and the demand for it, on the other, always determines the market rate of interest. This happens to a greater extent when a more developed credit system and its high concentration create a general social status for loan capital and in this way throw it into the money market.

AT modern conditions the unity of the loan capital market increases, since the accumulation of money capital and savings is carried out mainly by the credit system, the joint-stock form of enterprises operates widely, and the reduction of dividend to loan interest occurs more fully.

At the same time, there are opposite trends in the market that undermine its unity, which include the further monopolization of the market by the largest credit institutions; the process of internationalization associated with the migration of monetary capital between national markets; as well as cyclical instability of the economic environment and inflationary processes. Therefore, the securities market with its main elements (over-the-counter and exchange turnover) is a mechanism that functionally enters the loan capital market. The securities market develops and moves according to its own laws, determined by the specifics of the so-called fictitious capital, but is closely linked to the capital market.

At present, practice shows that an impulsive slowdown or acceleration of securities market operations significantly affects the movement of loan capital, its market structure and functioning. most painful and weak side the securities market is its acute susceptibility not only to economic, but also to political shocks, forcing it to work at faster speeds than the capital market and other market mechanisms. Moreover, the suspension of the securities market in some cases can have quite tragic economic and political consequences for the country.

Accumulation of money capital

Loan capital, as a rule, operates on the basis of the circulation of real and money capital. At the same time, fictitious capital appears and develops on the basis of loans. Fictitious capital should be understood as the accumulation and mobilization of money capital in the form of various securities: shares, bonds of private companies, government securities
(bonds). The sphere of application of fictitious capital is loan capital, therefore the origins of fictitious capital lie in loan capital, and without the latter the former cannot develop. With the improvement and formation of loan and fictitious capital, the formation of their specific markets, they constantly interact and mutually transform. The process of flowing one capital into another is explained, as a rule, by market considerations, as well as the profitability of investments (in the form of deposits in banks, insurance and pension funds investing in securities, etc.). This is a continuous and dynamic process. Usually, the growth of the economy in the cyclical phase of the rise leads to an increase in stock prices, and the amount of fictitious capital increases, but externally the process looks like the accumulation of money capital. By its accumulation is largely meant the accumulation of certain claims to production, market price and the fictitious capital value of these claims, which arise primarily as a result of the fact that the shareholding form continues to dominate the market economy. In addition to shares, forms of money capital are private and government bonds, bank and savings accounts, accumulated insurance and pension reserves, as well as bills and banknotes.

With the development of interest-bearing capital and the credit system, every capital seems to be doubled, and in some cases even trebled, as a result of the use of various methods of accumulation. The same capital or any debt claim may appear in different forms and in different hands, and most of this "money capital" is completely fictitious. The accumulation of fictitious capital proceeds according to its own laws and therefore differs both qualitatively and quantitatively from the accumulation of money capital. At the same time, these processes interact. Stock market crashes have a negative impact on the process of accumulation of money capital, and an overstrain in the loan capital market usually causes a downward fluctuation in stock prices. As a rule, the depreciation or appreciation of these securities is not related to the movement in the value of the real capital they represent. Therefore, the wealth of a nation or country, as a result of such a depreciation or appreciation, as a whole remains at the same level as it was before the start of this process.

Fictitious capital does not arise as a result of the circulation of industrial capital in monetary form, but as a result of the acquisition of securities that give the right to receive a certain income (interest on capital). One form of fictitious capital is government bonds.
The formation and growth of joint-stock companies contributed to the emergence of a new type of securities - shares. As the, joint-stock companies began to turn into more complex associations (concerns, trusts, cartels, consortiums). Their development in the face of intense competition and scientific and technical The revolution led to the attraction of not only equity, but bonded capital. This entailed the issuance and placement of bonds by private companies and corporations, i.e. private bond loans.
Therefore, the structure of fictitious capital has developed from three main elements: shares, bonds of the private sector and government bonds (central government and local authorities). The private sector and the state are increasingly attracting capital through the issuance of shares and bonds, thus increasing fictitious capital, which significantly exceeds the actual, real capital necessary for capitalist reproduction. In terms of speculative transactions in modern society, fictitious capital representing securities acquires an independent dynamics independent of real capital.

At the same time, fictitious capital reflects the objective processes of fragmentation, redistribution, and unification of existing real productive capital. In the very structure of the fictitious large, the share of government bonds has increased, which is due, firstly, to the deficit of state budgets and the growth of public debt, and, secondly, to the increased state intervention in the economy. In Western countries
Europe and Japan government loans to a certain extent also reflect the development of state ownership. At the same time, the swelling of fictitious capital through the issuance of government loans to cover budget deficits serves as a source of inflationary processes and, thus, the depreciation of money, and, as a result, currency shocks.

The independent movement of fictitious capital in the market leads to a sharp separation of the market value of securities from the book value, which further deepens the gap between real material values and their relatively fixed value represented in securities.

The discrepancy, disproportions between the dynamics of fictitious capital and real productive capital are accompanied by a depreciation of fictitious capital, which, as a rule, is expressed in a fall in securities prices and, ultimately, in stock market crashes.

Three main aspects are invested in the concept of accumulation of money loan capital: firstly, it is the equivalent of real national economic accumulation, since the national rate of money accumulation is quantitatively equal to the rate of real accumulation, i.e. the share of investment in GNP and national income; in this sense, accumulation is carried out in material and monetary forms in any sector of the economy. Secondly, the accumulation in the form of money is equivalent to the supply of money capital by the credit system and the loan capital market. Thirdly, the accumulation of money capital is also the accumulation of the monetary value of fictitious capital. This is the main macroeconomic role of the market, which reflects the accumulation and mobilization of money capital.

In general, these provisions remain relevant, and at the present time we can talk about their certain change under the influence of inflation, which in the last decade has become a chronic disease of capitalism. On the one hand, due to rising prices, the national rate of monetary accumulation can potentially be overestimated, on the other hand, a high level of inflation distorts the demand and supply of loan capital, as well as the amount of fictitious capital.

Huge masses of money capital accumulated and mobilized through the loan capital market, its size and cumbersome mechanism create a certain illusion that the amount of money capital is potentially equal to the amount of loan capital. This appearance arises primarily in those countries where there is a fairly flexible multi-stage and extensive credit system. For countries with a developed credit system, it can be assumed that all the money capital that can be used for lending operations exists in the form of deposits in banks, insurance reserves and persons able to lend money. By at least this makes it possible to potentially evaluate money capital as loan capital. It is the storage of funds in the accounts of various financial institutions, in securities, as well as the expression of loan capital in monetary form, that create the appearance of blurring the boundaries between money and loan capital.

These boundaries are increasingly blurred with the development of the credit system. As a rule, money capital is accumulated either in the form of Securities or bank deposits or, finally, banknotes. This means the transfer of capital to a loan (since a banknote can also be considered a loan to its holder issuing bank, and through it - to the state, etc.).

Under the conditions of a developed credit system, practically all money capital, in whatever sense this term is used, is provided on credit, i.e. it adds to the quality of the money-form the qualities of alienation through lending, and thus becomes loanable money-capital. However, neither under the conditions of a market economy, nor with an extensive credit system, can the essence of money and loan capital be identified. The latter is only a derivative of money capital, a part of it, albeit a significant one. Loan money capital should be considered from the point of view of accumulation in the loan capital market, while money capital arises in the process of circulation of capital and serves as the basis for the appearance of loan capital. The concept of loan capital is broader both in qualitative and quantitative terms. Every loan capital, whatever its form and whatever the nature of its use-value, is always only a special form of money-capital.

Money capital cannot always be deposited in the loan capital market, as is practiced by corporations and individuals.
Many firms keep large funds in cash for various special purposes (acquisitions of competitors, bribery, election campaigns), without reflecting them on their deposits. In addition, in Western countries, under conditions monetary tensions in the 70s - 80s. the hoarding1 of gold and silver by private individuals intensified. This

"Tesavration (from Greek treasure) - the accumulation of gold (bars and coins) as a treasure; in a broad sense - the creation of a gold reserve
Central banks, treasuries and special funds. also speaks of certain differences between money and loan capital, although in modern conditions the scale of the loan capital market does not always make it possible to clearly define the boundaries between them.

The functions of the loan capital market are determined by its essence and the role it plays in the economy, as well as by the tasks of reproducing production relations. We single out four main functions of the loan capital market: accumulation, or collection of monetary savings
(savings) of enterprises, population, state, as well as foreign clients; the transformation of monetary funds directly into loan and fictitious capital and its use in the form of capital investments directly for servicing the production process. These two functions began to develop extremely strongly in industrialized countries in the postwar period. As a third function, service to the state and the population should be singled out as a source of capital to cover both government and consumer spending, given the huge role of the loan capital market in covering budget deficits and financing housing construction through mortgage credit lending within the framework of state-monopoly capitalism.

In all three cases, the market acts as a kind of intermediary in the movement of capital, since in actual movement capital exists as capital not only in the process of circulation, but also in the process of production.
Along with these functions, the loan capital market also performs the function
(fourth) acceleration of concentration and centralization of capital.

These functions of the loan capital market are aimed at maintaining production, ensuring the functioning economic system, the market mechanism.

Reflecting the accumulation and movement of money capital, which is a value category, the loan capital market is organically linked to the movement of value in its monetary form, the formation and use of various monetary funds in the form of securities and credit.

Conclusion

Securities play a significant role in the payment turnover of the state, in the mobilization of investments. The totality of securities in circulation forms the basis of the stock market, which is the regulatory element of the economy. It promotes the movement of capital from investors with free cash resources to issuers of securities. The securities market is the most active part of the modern financial market and makes it possible to realize the various interests of issuers, investors and intermediaries. The importance of the securities market as an integral part of the financial market continues to grow.

The most important source of economic development, a new industrial boom and overcoming the investment crisis in Russia was the formation of the securities market, the true purpose of which is not only to cover the budget deficit, redistribute property and receive speculative profits, but also to stimulate investment in various sectors of the economy.

Since 1992, an active policy has been pursued in Russia to attract the necessary credit resources through the issuance of government securities. The Russian financial market is gradually filled with government securities issued into circulation, in the period from 1995 to 1997. Approximately 46% of the deficit was repaid through proceeds from the sale of securities federal budget. Not only is the volume of emission growing, but also the range of types of government debt obligations in accordance with the need for the stability of the financial market. An important task facing the Ministry of Finance of Russia is to use the accumulated experience in organizing the government securities market to implement the strategic line - increasing the terms of borrowing.
Gradually, a stock market should form to serve investment projects in production housing construction and etc.

The actively developing securities market and the significant role of government securities in its development require highly qualified specialists in this field. It is necessary to study and analyze the world and domestic experience functioning of the government securities market, types of securities, conditions of their issue and placement, profitability.

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Expanded reproduction in the firm means such an increase in the size of capital, which leads to an increase in the scale of production of goods.

The businessman has strong motives for his firm to move up the spiral. First of all, this is the personal benefit of the owners, because thanks to the increase in the production business, they get the opportunity to increase their standard of living and increase their property. Competition also has its effect: the one who constantly strengthens his economic potential wins in it. The value of competitive capital - like a bar for high jumps - is constantly rising. For example, in the United States, for a stable position in the market, you now need to have capital of several tens of millions of dollars.

Meanwhile, the desire to have more property is not enough. The whole point here rests on the need for accumulation.

Accumulation: sources and structure

Capital accumulation- this is an increment of monetary and material resources spent on expanded reproduction. This kind of additional capital can be called "an investment in the future" because it goes to improve the lives of present and future generations of people. It is quite obvious: the accumulation of capital cannot be identified with the accumulation of treasures, with the saving of funds at rest.

The accumulation of capital naturally needs sources. In a normally operating company, the first source is profit.

With expanded reproduction, profit is divided into two parts: a) accumulation and b) income used for personal consumption and other purposes (they will be specifically discussed in the topic of profit). To establish a ratio between these shares of profit is not an easy problem for its owners.

Meanwhile, it has been noted that with the increase in the amount of capital, their owners, as a rule, spend more money on increasing their personal wealth and on luxury goods. But among them come across and stingy people who save on the smallest. in order to turn more money into active capital. So, the American Henrietta Green (1835-1916) became the record holder of all time for stinginess. Although her fortune reached $95 million, Green ate cold oatmeal and was too tight-fisted to warm it up. Her son's leg was amputated because she tried too long to find a clinic with free medical care.

Members of a joint-stock company are well aware that the more profit is allocated to accumulation, the less income per share, and vice versa. Therefore, the issue of distribution of profits based on the results of the financial year becomes the subject of heated disputes among shareholders. Not everyone is happy when, as dividends, they are given not money, but new shares (which is provided for by the charter of many corporations).

However, as a rule, own profit firms do not have enough to accumulate. Therefore, they resort to its other source - banking and other types of credit. In many developed countries, borrowed funds account for more than half of the total savings.

Now consider the structure and functions of accumulation.

Accumulation at the enterprise (Hc), as a rule, has the following basic structure: a) production (Hp); b) non-productive accumulation (Нн) and c) accumulation used to attract additional workers and improve the skills of all employees (Нр):

Industrial accumulation(in the economic literature it is often referred to as "investment") is spent: a) on increasing the number of means of production (expanding production areas and building new buildings, purchasing equipment, etc.); b) growth inventories(reserves and insurance funds).

Non-productive accumulation goes:

A) on the growth of non-productive assets ( housing stock enterprises, medical institutions, institutions of cultural and public services);

B) additional costs for training and advanced training of workers (increased costs for training in working professions, growth in qualifications and retraining of employees, which leads to an increase in their productivity).

In the West, the costs of firms and the state to improve people's health and to improve the education and training of workers have been called "investment in human capital." For the first time, serious studies of such investments were carried out by Nobel Prize winner Gary Becker (USA). In the book " Human capital"(1964) G. Becker showed that an increase in investments in the training of future specialists and the training of qualified workers can bring in the future no less profit than the cost of machinery.

Emerging economy in the 1960s medical care convincingly proved: regular physical education and sports, good health care allow avoiding high costs for serious treatment of sick people and replenishing the loss of qualified professional personnel. It is no coincidence that some large corporations even pay a wage supplement to those employees who systematically engage in physical culture and sports and create the necessary conditions for this (stadiums, gyms with exercise machines, etc.). This justifies itself economically, if only because the company's expenses for insurance medicine are reduced. It is noteworthy that the cost of funds for medicine in medium-developed countries is approximately 9% domestic product, and in the USA reach 12-13%. Such data testify to a certain improvement in the protection of public health. During the period from 1980 to 1993, the population per doctor decreased, for example, in Japan from 740 to 608, Mexico from 1149 to 615, Italy from 750 to 207, the USA from 549 to 421, France from 462 to 334, Germany - from 452 to 367, Sweden - from 454 to 394, Russia - from 261 to 231.

A new scientific discipline - the economics of education has proven the high efficiency of investments in the general and professional education. For example, to calculate the profitability of spending money on training specialists in higher educational institutions First of all, relevant costs are taken into account (direct costs of education, fees for textbooks, etc.). Then the average annual earnings of workers with secondary and higher education are compared. According to American statistics for the mid-1980s, for 40 years of work after graduation, a specialist receives a salary of about $ 0.5 million more than a worker with a secondary education1.

1 See: Fischer S., Dornbusch R., Schmalenzi R. Economics. M "1993. S. 302-303.

So, we got acquainted with the essence, structure and functions of accumulation in existing enterprises. However, we have passed over the question of how the accumulation of capital originally arose. This question, it turns out, is a kind of curious riddle.

initial accumulation of capital

Figuratively speaking, capital can be likened to a fabulous goose that lays golden eggs: the money spent at the beginning generates new money (profit going to new capital).

The question is: what appeared historically earlier - "chicken" (capital) or "egg" (accumulation as part of profit)?

Translating the essence of this problem into the language of economic theory, one can present the matter as follows. On the one hand, capital generates profit, and due to its accumulated part, the initial amount of money increases. On the other hand, accumulation presupposes profit, and this may result from the functioning of capital. As a result, it is not clear where the beginning of the process is: everything moves in a vicious circle. How to get out of it?

A. Smith found a way out. He suggested that the ordinary accumulation of capital was once preceded by "primitive accumulation", which was the starting point of the capitalist economy. This accumulation, of course, did not come from profit.

In order for capitalist production to emerge, two historical prerequisites were necessary: first, the abolition of the feudal enslavement of the peasants and the formation a large number free workers for hire and, secondly, the formation of significant amounts of capital from entrepreneurs. In Western Europe, these processes took place in the XV-XVIII centuries.

People accumulated a preliminary amount of capital in various ways and methods. So, in the West, the version about two types of owners is widespread. Some of them are idle people who spent their income on personal needs. Others are thrifty owners: at the expense of income they constantly increased their property. True, it was a slow process of enrichment.

The initial accumulation of capital was accelerated by certain violent methods of enrichment: a) colonial wars and predatory exploitation of the population of the colonies; b) the slave trade; c) the use of slave labor on plantations and many mines for the extraction of precious metals; d) trade wars, etc. In a number of countries, the state played an important role in the formation of the bourgeoisie by financing the construction of large factories, mines, mines, and railways.

The initial accumulation of capital in today's Russia has acquired a specific character. In our country, of course, it was not required for the first time to create industrial enterprises. The task was mainly to that. to change ownership state enterprises, and even then not at all. At the same time, it was necessary to quickly, as they say, put together money capital.

The starting point of primitive accumulation was the formation of large sums of money from potential businessmen. The first steps in this direction were taken in the years of "perestroika". Since 1987, favorable conditions have developed in the country for the emergence of the first millionaires: at that time, a broker on the stock exchange earned 1 million rubles. in 2 weeks, and an entrepreneur in trade and cooperation - in 4 months.

The accumulation of capital took on its greatest scope with the beginning economic reforms. Huge sums were obtained in a short time with the help of profiting from inflationary processes in the trade business, large-scale speculation in money and currency on the stock exchanges, the issuance of loans at extremely high interest rates, the creation of fictitious joint-stock companies, investment funds, etc.

The criminal variant of privatization occupies a special place in this process. It's about about several areas of personal enrichment through illegal means:

many managers of enterprises, secretly from the labor collectives, transferred state property(for a meager price) to their private or controlled form of ownership;
employees of some local committees of the State Property Committee illegally sold objects of federal property;
often government officials took bribes for privatizing property at auctions at a deliberately low price;
criminal dealers created fictitious checks investment funds(for voucher privatization) for the purpose of personal gain and robbery of depositors (after collecting and selling vouchers, the organizers of the funds hid), etc.

It can be assumed that as the economic reforms develop further, the possibilities of personal wealth will narrow due to inflation and speculation. Strengthening law enforcement will strengthen the economic security of the state. In this regard, the forms of civilized business will develop more and more. The path to prosperity and strengthening its competitiveness lies through raising the scientific and technical level of production and the efficiency of accumulation.

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on the topic: "Accumulation of money capital"

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Savenkova O.G.

Introduction

The accumulation of money capital plays an important role in a market economy. The very process of accumulation of money capital is preceded by the stage of its production. After money-capital has been created or produced, it must be divided into a part which is redirected into production and a part which is temporarily released. The latter, as a rule, is the consolidated funds of enterprises and corporations accumulated in the loan capital market by financial institutions and the securities market.

The emergence of this type of capital is associated with the development of the need to attract an increasing amount of credit resources due to the complication and expansion of commercial and industrial activities. Thus, the stock market historically begins to develop on the basis of loan capital, since the purchase of securities means nothing more than the transfer of part of the money capital to a loan.

The key task that the securities market must fulfill is, first of all, to provide conditions for attracting investments to enterprises, the access of these enterprises to cheaper capital compared to bank loans.

The securities market (stock market) is part of the financial market (along with the loan capital market, the foreign exchange market and the gold market). In the stock market, specific financial instruments are traded - securities.

Securities are documents of the established form and details certifying property rights, the implementation or transfer of which is possible only upon presentation. These property rights in securities are due to the provision of money for a loan and for the creation of various enterprises, purchase and sale, pledge of property, etc. In this regard, securities give their owners the right to receive a fixed hike. The capital invested in securities is called stock (fictitious). Securities-is a special commodity that is circulated on the market, and reflects property relations. Securities can be bought, sold, assigned, pledged, stored, inherited, donated, exchanged. They can perform certain functions of money (means of payment, settlements). But unlike money, they cannot act as a universal equivalent.

1. The concept, goals, objectives and functions of the securities market

mobilization of temporarily free financial resources for the implementation of specific investments;

Formation of a market infrastructure that meets international standards;

secondary market development;

Activation of marketing research;

Transformation of property relations;

Improvement of the market mechanism and management system;

Ensuring real control over stock capital on the basis of state regulation;

Reduction of investment risk;

Formation of portfolio strategies;

Development of pricing;

Forecasting of perspective directions of development.

The main functions of the securities market include:

The accounting function is manifested in the mandatory registration in special lists (registers) of all types of securities circulating on the market, registration of participants in the securities market, as well as fixing stock transactions executed by contracts of sale, pledge, trust, conversion, etc.

The control function involves monitoring compliance with the law by market participants.

The function of balancing supply and demand means ensuring the balance of supply and demand in the financial market by conducting transactions with securities.

The securities market as an instrument of market regulation plays an important role. The auxiliary functions of the stock market include the use of securities in privatization, anti-crisis management, economic restructuring, stabilization of money circulation, anti-inflationary policy.

2. Primary and secondary securities markets

attraction of temporarily free resources;

activation of the financial market;

lower inflation rates.

The primary market performs the following functions:

Organization of the issue of securities;

Placement of securities;

Accounting for securities;

Maintaining a balance of supply and demand

Determination of the market value of securities;

The secondary securities market is the most active part of the stock market, where most transactions with securities are carried out, with the exception of the primary issue and initial placement. The purpose of the secondary market is to provide real conditions for buying, selling and conducting other transactions with securities after their initial placement.

The following main tasks of investment activity in the securities market can be distinguished:

1) regulation of investment flows. Through the securities market, in recent years, capital has been mainly transferred to industries that provide the highest return on investment;

2) ensuring the mass nature of the investment process. Legal entities and individuals who have the necessary funds can freely purchase securities;

3) reflection of ongoing and predicted changes in the political, socio-economic, foreign economic and other spheres of society through changes in stock indices;

4) determining the directions of the investment policy of enterprises by modeling various options for investing in securities; .

5) formation of the sectoral and regional structure of the national economy by regulating investment flows. By purchasing securities of certain enterprises located in specific territories, the investor invests in their development. Enterprises whose securities are not in demand are unable to attract the necessary investments;

6) implementation of the state structural policy. By acquiring shares of especially important enterprises, financing their development, the state supports socially significant, priority sectors;

7) implementation of the state investment policy. Through the government securities market, the state influences the amount of money supply, maintains the balance of the state budget or regulates the size of its deficit,

3. Accumulation of money capital as the basis for the formation of fictitious capital

The accumulation of money capital plays an important role in the economy. The very process of accumulation of money capital is preceded by the stage of its production. When money-capital has been created and is still in the sphere of production, it is, as it were, pure money-capital. Its transfer in the form of a loan to other spheres of the economy means that it accepts a different shell - loan capital.

4. Money capital and fictitious capital: theoretical aspects of similarities and differences

Conditions for the formation of loan capital also arise when a percentage of their investment in the economy is received on free funds that do not belong to the bank, but are only kept by it. It is the amount of this interest that is the property. The accumulation of this interest causes an additional allocation of loan capital as property capital.

Commercial banks play a significant role in the distribution and circulation of government securities, acquiring and selling them on the stock markets. Such banks occupy one of the leading places among the holders of the securities in question (for example, in the United States in the late 80s, commercial banks were holders of federal government marketable securities in the amount of approximately $ 200 billion, which is about 10% of the total volume of outstanding papers). Even greater is the role of commercial banks as dealers, through whose hands a much larger amount of government securities passes than accumulated by them as holders.

Government securities are usually divided into market and non-market ones, depending on whether they are traded on the free market (primary or secondary) or are not included in secondary circulation on stock exchanges and are freely returned to the issuer before their expiration date. The bulk of government securities are marketable.

In economically developed countries, government securities play a significant role in financing government spending, maintaining the liquidity of the banking system, and developing the economy as a whole. State budget expenditures that exceed revenues can also be financed by a loan taken by the state from the central or commercial banks. However, as world practice has shown, loans are rarely used for these purposes, since they require the state to pay high interest, which exceeds the cost of issuing securities. In addition, the banks themselves are interested in issuing short-term loans at higher interest rates. The issue of money to cover the costs of the state budget is also undesirable, since this leads to a breakdown in monetary circulation and inflation. Thus, the most acceptable option for financing state budget expenditures is the issuance of government securities. Traditionally, they are used to solve the following tasks:

Repayment of previously placed loans. The need for the issue of government securities for this purpose also arises with a deficit-free state budget.

Smoothing fluctuations in the receipt of tax payments to the budget (elimination of cash imbalances in the budget).

Providing commercial banks and other financial institutions with liquid and highly liquid reserve assets. In a number of countries, short-term government securities have been used for this purpose. By investing part of their resources in government-issued debt, financial institutions receive income in the form of interest.

Financing of own programs of local authorities and capital-intensive projects, as well as attraction of funds to off-budget funds.

The primary placement of government securities is carried out with the help of intermediaries. Among the latter, the dominant position is occupied by central banks, which not only organize the work of placing new loans, but in some cases also purchase large blocks of government debt obligations themselves. In some states, these functions are performed by the ministries of finance, and in most countries with developed economies, commercial and investment banks, banking houses can act as intermediaries in the initial placement of government securities.

In the post-war years, a clear trend was revealed towards a fall in the market rates of government securities. A particularly significant drop occurred during the last cyclical crises in 1969-1970. and in 1973-1975, as well as in the early 80s. In general, over these periods of time, the rate of government bonds in the United States fell by 45%.

The increase in public debt required the governments of industrialized countries to carry out special measures aimed at maintaining the rate of government securities and carried out by ministries of finance and central banks. For the purpose of constant financing of the state, the central bank, commercial banks and other credit and financial institutions bought up government bonds and thereby maintained the relative stability of their exchange rate.

The huge size of the public debt left its mark on the functioning of the private credit system. In the post-war years, the nature of commercial bank deposits and check circulation changed. As a result of the purchase of government securities, part of the deposits becomes fictitious, the money supply is separated from the needs of production, and most of the newly issued banknotes are associated, as a rule, with the purchase and sale of securities. At the same time, it should be taken into account that a significant part of the state debt, represented by short-term bills, turns into deposits or cash and contributes to the development of inflation. This was one of the important factors in the unwinding of the inflationary spiral in the United States and Western Europe in the 1970s and early 1980s, when inflation was at its highest. In the USA it reached 12-13% on an annualized basis, and in Western Europe it reached 20% or more. Thus, the increase in inflation rates is largely caused by the continuous growth of the budget deficit and public debt.

A large proportion of short-term debt increases the dependence of government fiscal policy on the private capital market. On the one hand, the amount and terms of loans, the level of interest and the method of their placement are determined by the situation on the capital market, on the other hand, the government is often forced to resort to refinancing its short-term debt. Recently, there has been a clearer trend towards longer periods of rapid growth of public debt and shorter periods of its repayment, and the repayment of public debt has become both less regular and increasingly less significant in size.

Marketable securities, which account for 2/3 of the total debt and which are freely sold and bought, are represented by treasury bills, notes and bonds.

In the countries of Western Europe and Japan, the degree of development and differentiation of government securities is somewhat lower than in the USA, Canada and England. So, in France, although government bonds dominate the securities market over private shares and bonds, the degree of their choice when buying is rather limited. Basically, two types of government bonds are quoted and sold on the market: treasury bonds and bills.

Thus, each country has its own specific structure of public debt, based on various types of government bonds.

The most important feature of the debt structure in the 60-70s. was a sharp reduction in long-term and increase in short-term liabilities. This was one of the factors behind the increase in inflation. The main reason for the shift towards short-term debt was that in the face of economic difficulties, especially inflation, the private sector was very reluctant to purchase long-term government bonds. Credit and financial institutions and individual investors sought to return their funds provided to the state as quickly as possible. Due to the fact that the public debt was mostly short-term, the government, represented by the Ministry of Finance, was forced to place new bills of large amounts almost every month in order to refinance those papers that were maturing. At the same time, additional funds were also withdrawn to cover current budget deficits. These events indicate a further escalation of the debt problem at the government level and difficulties in the system of public finances.

The scale of debt and its short-term nature testify to the growing contradictions of state regulation of the economy with the help of the financial system: on the one hand, the governments of Western countries in their economic policy are increasingly relying on financing long-term expenses, on the other hand, they are focused on covering deficits with the help of short-term loans. However, this has its own logic, which is explained by the objective conditions that exist in the country.

The public debt problem has also worsened as a result of the loss of interest in government securities on the part of private financial institutions, which have long been the main buyers of government bonds. The highest proportion of acquisitions of government securities by these institutions, for example in the United States, falls on the period of the Second World War. The high demand for government securities was due to a number of factors operating in the military environment. First of all, the demand of industrial capital for loans was weakly expressed, and the issue of new issues of private securities was small, since the structure and dynamics of production were determined mainly by military orders from the government. It, in turn, encouraged the investment of funds by financial institutions in government paper to cover swollen wartime government spending.

In the post-war years, the massive renewal of fixed capital in industrialized countries led to high interest rates on private securities. As a result, the money funds of credit and financial institutions began to flow into shares and bonds of trade, industrial and transport corporations. Qualitative shifts in the placement of public debt over the long post-war period are confirmed by the fact that the share of the private credit system in the United States in the post-war years decreased markedly - from 50% in 1946 to 17% in 1990. However, this does not mean that the credit and financial institutions and the private sector stopped buying government paper altogether. Their interest (especially banks and corporations) comes down to buying mainly short-term bonds, which are a kind of "liquid reserve".

It can be argued that the problem of public debt by the end of the twentieth century. only worsened, this is evidenced by the fact that before the central banks created the conditions for the placement of securities by changing the norms of reserves and reducing the cost of credit. Recently, they have been compelled to acquire a growing mass of these papers themselves, mainly by issuing money. As a result, the structure of the balance sheet of central reserve banks changed dramatically. If in the prewar years gold and currency accounted for 81.6% of all assets and 13.1% for government securities, then by the end of the 90s. gold accounted for only about 10% of assets, and Treasury bonds over 75%., public debt further upsets the balance between income and expenditure. This means that large amounts of money capital are withdrawn from the loan capital market, which could be used to accelerate the rate of economic growth. So the US government, in connection with a large budget deficit, constantly places its loans on the securities market. Small credit institutions (savings and loan associations, credit unions, etc.) express particular concern and dissatisfaction in connection with the increased emission of government loans, since the increased emission of government loans causes an outflow of resources from these institutions. Government spending is generally not offset by tax revenues and generates huge deficits hanging over the capital market.

The constant increase in government spending forces the government to increase the demand for loan capital in order to support economic growth. This leads to two negative consequences - the withdrawal of a large amount of money capital for non-productive purposes and an increase in the tax burden of the population. Thus, the private sector represented by commercial and industrial corporations is forced to reduce its demand in the loan capital market. As for the second consequence, public debts are based on public revenues, which must cover annual interest and other payments, and therefore the modern tax system has become a necessary addition to the public borrowing system, an increase in public debt generates an increase in the tax burden.

5. The role and importance of government bonds in government financing

Functional aspects of the government securities market of developed countries include the following components (main functional components):

Mobilization of temporarily free funds of commercial banks, organizations, enterprises, non-bank financial institutions and the population. Concentration through government securities at the state level of financial resources contributes mainly to reducing the budget deficit;

The use of government securities as an active regulator of monetary relations, in particular, central banks form monetary policy on their basis, coordinate monetary circulation;

Ensuring the liquidity of the balance sheets of credit-financial institutions through the effective implementation of the potential inherent in government securities.

The target orientation of the potential of government securities, reflecting foreign experience, covers:

Investing in state targeted programs for economic development;

Ensuring the liquidity of assets of commercial banks and other credit and financial institutions;

covering the deficits of state and local budgets;

Repayment of debts on government loans.

Currently, in developed countries, government securities are the main sources of formation and sale of domestic government debt. Emissions of government securities into unpaid domestic debts vary in different countries from 20 to 90%, for example, in Germany these values reach 40%, in the USA - 70%, Great Britain - 90%.

6. Money capital and fictitious capital

Like loan capital, the loan capital market is a historical category that appeared and developed under the conditions of commodity-money relations, turned into a special sphere of economic relations of the economy, and with development this concept becomes more complicated and expands.

Money capital is released in the process of reproduction, directed in the form of loan capital to the market, and then returned to the creditor (banks and other financial institutions).

The essence of the loan capital market does not change at all depending on what kind of money capital is used on it: own or someone else's, accumulated, i.e. it does not depend on whether the banker carries on his business only with his own capital or with the capital accumulated in his hands.

First of all, the economic role of the loan capital market lies in its ability to combine small disparate funds. As a rule, small sums in themselves cannot act as money capital. Combined into large sums, they form a powerful monetary potential. This allows the market to play an important role in the processes of concentration and centralization of production and capital. It provides an opportunity for industrialists, merchants and entrepreneurs to dispose, through the mediation of bankers and their institutions, of all the monetary savings of the whole society.

7. Features of the accumulation of capital in the form of securities

Considering the features of the accumulation of money capital at the present stage, first of all, it is necessary to dwell on the forms of accumulation and identify a number of trends that have emerged in this area. The structure of the loan capital market consists mainly of two elements: credit and financial institutions and the securities market, which in turn is divided into over-the-counter turnover and the stock exchange.

Credit and financial institutions carry out operations with capital accumulated by the population, enterprises and the state. The accumulation in these institutions, as a rule, takes place in the form of money. The money capital accumulated in the form of bank deposits, insurance and pension reserves is used by them to provide loans and purchase securities.

In the first post-war decades, the role of accumulation in the form of securities was significantly reduced due to frequent fluctuations in stock and bond prices, as well as increased competition from financial institutions. At the same time, in the same period, the accumulation of savings through the credit system began to become increasingly important, which was carried out differentially by types of credit institutions: in commercial banks - banknotes, deposits on current accounts; in commercial and savings banks and specialized savings institutions - savings deposits; reserves in private life insurance companies and pension funds; state funds for social security and insurance; hoarding of precious metals (gold, silver).

Various forms of accumulation of monetary savings of the population have a certain economic impact. In conditions when the issue of money exceeds the needs of the economy, the accumulation of savings in the form of cash and bank current accounts is a factor that increases inflation. An increase in the money supply leads, as a rule, to a depreciation of money and a decrease in the real incomes of the population. At the same time, the excessive accumulation of money by the population means a temporary refusal to consume, entailing a reduction in consumer spending, which in some cases negatively affects economic growth rates.

Savings deposits in banks and other credit institutions in the postwar years have become the most important source of accumulation of money capital. At the expense of savings deposits of private and state credit institutions, capital investments in industry, other sectors of the economy, as well as state expenses were financed. The inflow of cash savings into savings institutions was stimulated by a relatively high interest rate on deposits. In the postwar years in the industrially developed capitalist countries it averaged 3-4% per annum, and for some types of long-term deposits 5% and more. If in the first post-war years the high level of interest was explained by inflation and the insufficient supply of loan capital, then in the subsequent period it remained at the same level due to the growth of capital investments and the need for credit.

In the first post-war years in Germany, both the securities market and the stock market were essentially frozen. Their movement and development began only at the end of 1954 due to the intervention of the government and the introduction of tax and other benefits. The high growth rates of the German economy increased the accumulation of capital and contributed to the increase in fictitious capital. In 1965, the issue of all types of securities amounted to 17.8 billion marks, or 4.4% of the net national product and 23% of the country's gross capital investment. The nominal value of all fixed interest securities in circulation was DM 100 billion and their market value was DM 78 billion. At the same time, the mobilization of monetary savings into securities increased during the specified period. In the early 50s. investments of individuals in securities amounted to 100 million marks, and in the mid-60s they already reached 6.9 billion marks, which amounted to 20% of all personal savings in Germany. This trend reflected the growing role of the securities market in the mobilization of money capital. At the same time, if in 50-60 years. bonds and mortgages prevailed in the structure of purchased securities, then by the mid-60s. the share of purchased shares increased sharply, which accounted for approximately 1/3 of the total volume of securities.

The main trends in the accumulation of money capital, and in particular through securities, indicate that in industrialized countries the main flows of movement of money capital go through the hands of the wealthy strata of the population, although recently it has been found that the accumulation of securities in the hands of the middle strata has increased. In England, as a result of the redistribution of taxes in favor of the wealthy, from 1983 to 1986, the number of millionaires increased from 7 thousand to 20 thousand.

8. The securities market in the structure and mechanism of the loan capital market

Functionally and institutionally, the national loan capital market includes the operations of private credit and financial institutions, government agencies, foreign institutions and the securities market, which in turn is divided into over-the-counter (primary) and exchange turnover, as well as the market through the counter - the "street" market . Primary over-the-counter turnover covers mainly bonds of new issues. Only shares are traded on the stock exchange, as well as a number of previously issued bonds, both private and public.

The state, represented by credit institutions, is not only a seller of securities, but also their buyer, thus participating in the redistribution of money capital. Operations of credit and financial institutions in the capital market are not always associated with the acquisition of securities, so their activities should not be identified with either exchange or over-the-counter turnover of fictitious capital. In some cases, they finance corporations without buying securities through direct lending. At the same time, both over-the-counter turnover and the stock exchange are areas where credit and financial institutions play an important role. In addition, foreign banking capital is increasingly invading national capital markets.

A peculiar form of application of loan capital is a bill, since the market gives the character of an impersonal demand on the part of the lender, but not for income, as in a security, but for money. Endorsement, banker's acceptance are the means to make the bill a demand on the market, and not on an individual person. Moreover, a promissory note can be, like securities (stocks and bonds), sold (accounted for) at any time.

In modern conditions, the unity of the loan capital market is increasing, since the accumulation of money capital and savings is carried out mainly by the credit system, the joint-stock form of enterprises is widely used, and the reduction of dividend to loan interest is more complete.

At the same time, there are opposite trends in the market that undermine its unity, which include the further monopolization of the market by the largest credit institutions; the process of internationalization associated with the migration of monetary capital between national markets; as well as cyclical instability of the economic environment and inflationary processes. Therefore, the securities market with its main elements (over-the-counter and exchange transactions) is a mechanism that is functionally included in the loan capital market. The securities market develops and moves according to its own laws, determined by the specifics of the so-called fictitious capital, but is closely linked to the capital market.

At present, practice shows that an impulsive slowdown or acceleration of securities market operations significantly affects the movement of loan capital, its market structure and functioning. The most painful and weak side of the securities market is its acute susceptibility not only to economic, but also to political shocks, forcing it to operate at a faster pace than the capital market and other market mechanisms. Moreover, the suspension of the securities market in some cases can have quite tragic economic and political consequences for the country.

9. Accumulation of money capital

The sphere of application of fictitious capital is loan capital, therefore the origins of fictitious capital lie in loan capital, and without the latter the former cannot develop. With the improvement and formation of loan and fictitious capital, the formation of their specific markets, they constantly interact and mutually transform. The process of flowing one capital into another is explained, as a rule, by market considerations, as well as the profitability of investments (in the form of deposits in banks, insurance and pension funds, investments in securities, etc.).

This is a continuous and dynamic process. Usually, the growth of the economy in the cyclical phase of the rise leads to an increase in stock prices, and the amount of fictitious capital increases, but externally the process looks like the accumulation of money capital. By its accumulation is largely meant the accumulation of certain claims to production, the market price and the fictitious capital value of these claims, which arise primarily from the fact that the stock form continues to dominate the market economy. In addition to shares, forms of money capital are private and government bonds, bank and savings accounts, accumulated insurance and pension reserves, as well as bills and banknotes.

With the development of interest-bearing capital and the credit system, every capital seems to be doubled, and in some cases even trebled, as a result of the use of various methods of accumulation. The same capital or any debt claim may appear in different forms and in different hands, and the greater part of this "money capital" is entirely fictitious. The accumulation of fictitious capital proceeds according to its own laws and therefore differs both qualitatively and quantitatively from the accumulation of money capital. At the same time, these processes interact. Stock market crashes have a negative impact on the process of accumulation of money capital, and an overstrain in the loan capital market usually causes a downward fluctuation in stock prices. As a rule, the depreciation or appreciation of these securities is not related to the movement in the value of the real capital they represent. Therefore, the wealth of a nation or country, as a result of such a depreciation or appreciation, as a whole remains at the same level as it was before the start of this process.

Fictitious capital does not arise as a result of the circulation of industrial capital in monetary form, but as a result of the acquisition of securities that give the right to receive a certain income (interest on capital). One form of fictitious capital is government bonds. The formation and growth of joint-stock companies contributed to the emergence of a new type of securities - shares. As they developed, joint-stock companies began to turn into more complex associations (concerns, trusts, cartels, consortiums). Their development in the conditions of intense competition and the scientific and technological revolution led to the attraction of not only equity, but bonded capital. This entailed the issuance and placement of bonds by private companies and corporations, i.e. private bond loans. Therefore, the structure of fictitious capital has developed from three main elements: shares, bonds of the private sector and government bonds (central government and local authorities). The private sector and the state are increasingly attracting capital through the issuance of shares and bonds, thus increasing fictitious capital, which significantly exceeds the actual, real capital necessary for capitalist reproduction. In the conditions of speculative transactions in modern society, fictitious capital, representing securities, acquires an independent dynamics that does not depend on real capital.

At the same time, fictitious capital reflects the objective processes of fragmentation, redistribution, and unification of existing real productive capital. In the very structure of the fictitious large, the share of government bonds has increased, which is due, firstly, to the deficit of state budgets and the growth of public debt, and, secondly, to the increased intervention of the state in the economy. In the countries of Western Europe and in Japan, government loans to a certain extent also reflect the development of state ownership. At the same time, the swelling of fictitious capital through the issuance of government loans to cover budget deficits serves as a source of inflationary processes and, thus, the depreciation of money, and, as a result, currency shocks.

In general, these provisions remain relevant, and at the present time we can talk about their certain change under the influence of inflation, which in the last decade has become a chronic disease of capitalism. On the one hand, due to rising prices, the national rate of money accumulation can potentially be overestimated, on the other hand, a high level of inflation distorts the demand and supply of loan capital, as well as the amount of fictitious capital.

Huge masses of money capital accumulated and mobilized through the loan capital market, its size and cumbersome mechanism create a certain illusion that the amount of money capital is potentially equal to the amount of loan capital. This appearance arises primarily in those countries where there is a fairly flexible multi-stage and extensive credit system. For countries with a developed credit system, it can be assumed that all the money capital that can be used for lending operations exists in the form of deposits in banks, insurance reserves and persons able to lend money. At least this allows one to potentially evaluate money capital as loan capital. It is the storage of funds in the accounts of various financial institutions, in securities, as well as the expression of loan capital in monetary form, that create the appearance of blurring the boundaries between money and loan capital.

These boundaries are increasingly blurred with the development of the credit system. As a rule, money capital is accumulated either in the form of securities, or bank deposits, or, finally, banknotes. This means the transfer of capital into a loan (since a banknote can also be considered as a loan of its holder to the issuing bank, and through it to the state, etc.).

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