308 THE WORK OF THE STOCK EXCHANGE
Corporation will allow a given clearing member during the
day is posted at the top of his “record sheet” at the beginning
of the day. This amount ordinarily depends in each case upon
the sum which the given member has contributed to the clear-
ing fund; the minimum contribution to this fund is $10,000
and is scaled upwards from this figure in proportion as the
given member employs the services of the Stock Clearing Cor-
poration more extensively. Thus, by a temporary additional
contribution to the clearing fund, a member may temporarily
obtain larger credit in proportion. From the promptly posted
items on the member’s record sheet, the officials of the Stock
Clearing Corporation can obtain very quickly an exact state-
ment of the member’s position at any time during the day. If
he is using excessive accommodation, they will at once demand
of him, either that he at once establish new credits and post-
pone the establishment of additional debits in his account, or
else that he send to the Corporation immediately his certified
check for the amount by which the accommodation extended
to him exceeds the sum allowed him by the Corporation. In
this way, adequately safeguarded by its legal rights and its
practical precautions, the Stock Clearing Corporation is able
to impart a great flexibility to the whole stock settlement sys-
tem by extending to its members temporary accommodation
which they might otherwise have to seek at the banks in the
form of unsecured “day loans” ; thus the employment of such
“day loans” has been extensively obviated by the Stock Clear-
ing Corporation. In addition, by its especial ability to super-
vise, facilitate, and closely observe its members’ daily delivery
and settlement operations, the Stock Clearing Corporation is
able, when the occasion requires, to safeguard and stabilize
the whole settlement by on occasion halting the extension of
unjustified accommodation to members, and by shortening the
time during which it is employed.
Money Clearance and Settlement.—We have now pur-
sued the complex process of settling Stock Exchange contracts
