426 THE WORK OF THE STOCK EXCHANGE 
ties are made on the Exchange floor, but when such contracts 
are settled by delivering or paying for the securities. If Blank’s 
orders were executed on a Monday, for example, the contracts 
would ordinarily be settled Tuesday, etc., according to the 
regular daily settlement system employed on the New York 
Stock Exchange.?° 
How the Brokerage Commission Is Entered.—Brokerage 
commissions of Stock Exchange firms are governed by the 
scale of minimum rates contained in the Constitution ;** these 
rise as the stock bought and sold is higher in price. The mini- 
mum rate for 100 shares of a stock selling at $50 and above 
but under $75 would be $17.50; of one selling at $75 and 
above but under $100 would be $20; of one selling at $100 but 
under $200 would be $25; etc. 
In connection with the purchase of 100 Reading on August 
2, the reader will observe that Blank is debited for $11,475. 
The commission of $25 charged by Jenkins & Co. for making 
this purchase for him is added to the price of the stock 
($11,450) in the debit extension on the statement, instead of 
being posted as a separate item. On the other hand, the com- 
missions on sales are subtracted from their cash extension, 
since such sales create a credit item on the statement. Thus, 
when Blank sells 100 Columbia Gas at 8014, he is credited with 
$8,050 less a commission of $20 and sales tax of $4—or with 
38.026. 
The Item of Taxes on Sales.— This matter of the sales 
tax, already alluded to in its economic aspects,* should also be 
noticed as it affects the customer’s statement. When Blank 
sold his 100 Southern Pacific, a tax of $4 was deducted from 
his resultant credit along with commissions; he was not taxed 
when he bought the stock, however, since the tax applies only 
to sales and not to purchases. 
2 See Chapter XII, p. 276. 
ZL See Appendix XVd. 
2 See Chapter VIII, p. 207.