APPENDIX 
663 
(XVIh) The following provisions of the Stock Exchange Consti- 
ution (Rules, Chapter XV) cover periodic examination of securities 
held in safekeeping by Stock Exchange firms: 
Sec. 2. Members of the Exchange and firms registered thereon carrying 
margin accounts for customers shall, as of the date of their answer to each 
questionnaire, cause to be made a complete audit of their accounts and assets, 
including securities held for safekeeping, in accordance with such regula- 
tions as shail be prescribed by the Committee on Business Conduct, and 
shall file with said Committee a statement to the effect that such audit has 
been made and whether it is in accord with the answers to the questionnaire. 
Such statement shall, in the case of each member of the Exchange not a 
member of a registered firm, be signed by such member of the Exchange, 
and in the case of each registered firm shall be signed by each member of 
such firm unless, for good cause shown, the signature of one or more mem- 
hers is waived by the Committee on Business Conduct. Such statement 
shall in all cases be attested by the auditors, and the original report of the 
audit, signed by the auditors, shall be retained as part of the books and 
records of the member or firm. 
Sec. 3. Each member of the Exchange and firm registered thereon, not 
carrying margin accounts for customers, shall, at least once a year and 
whenever called upon so to do by the Committee on Business Conduct, 
ceport to said Committee whether such member or firm holds securities for 
safekeeping. Each of such members or firms holding securities for safe- 
keeping shall, at least once in each year, file with the Committee on Busi- 
ress Conduct a statement that all securities held for safekeeping have been 
-hecked and found to be intact, which statement shall also show in what 
manner the verification of the securities has been made and the date thereof. 
(XVIi) The Annual Report of the President of the New York 
Stock Exchange for 1920-30 (p. 110) contains the following per- 
centage statistics of insolvencies since 1900 of New York Stock Ex- 
change members, national banks, American banking institutions of 
all kinds. and American commercial firms: 
Year 
1900. . 
{QOI. .. 
1902. .. 
(903... 
(904. . . . 
1905. . .. 
1906. 
907. ... 
(9o8. ... 
1909... 
1910... 
1911... 
[912.... 
1913. 
191s 
ny’ 
rv. 
>. 
"embers 
7 
0 18 
J 54 
0 45 
0.27 
0.09 
0.90 
0.00 
J 
American 
Banks 
) 
+ 2 
oA 
0 LI 
0 46 
0.79 
0.40 
Nationa! 
Banks 
% 
“3 
I 
8 
ey 
0 
o 
o 
nt 
= < 
Sal 
0.08 
0.06 
0.08 
0.16 
0.20 
0.26 
Commercial 
Houses 
b:) 
2.80 
0.80 
0.81 
0.98 
0.99 
1.10 
[.22