THE COMMISSION HOUSE 439
the Exchange apparently originated in New York City, and
48% in other localities.” Since that date, the out-of-town
business transacted upon the Exchange has experienced a huge
proportional increase, estimated at times by some authorities at
80% orders from outside of New York City to 20% New York
City orders.
While no statistics comparable in exactness to those of the
Hughes Commission exist for recent years, nevertheless a great
increase in the proportionate amount of out-of-town orders on
the Exchange, apart from being a matter of common knowl-
edge in Wall Street, is shown by the increase in the number of
correspondents since 190g, as well as by the greater number of
shareholders in the large corporations whose stocks are listed
on the Exchange.
Benefits of the Extension of Brokers’ Wires.—Certain
valuable economic results have flowed from this evolution in
the market. A broader market has been created by it, repre-
senting more buyers and sellers than formerly, and hence with
more power to render its listed securities negotiable and to dis-
tribute them among investors.
Moreover, the swift extension of branch offices and corre-
spondents has made it possible for American business men to
travel extensively, either in the United States or abroad, and
at the same time keep in perfect touch with the market. The
necessity for such accommodation has created what is known
as “give up business.” If, for example, a customer of a com-
mission house with offices only in New York should be called
away to some other city and while there should wish to have
an order executed on the Stock Exchange for his account, he
can go into any branch office or correspondent of any Stock
Exchange commission firm there and place his order, “giving
up” the name of the firm with whom he has his account. The
branch office or correspondent, after verifying the facts over
its wire system, will at once permit his order to be executed.
Thus, any customer of any Stock Exchange firm is always as
