COMPARISON AND SECURITY CLEARANCE 315 
ing fund of over $10,000,000 to which clearing members 
contribute in proportion as they employ the Corporation’s 
services. This fund is kept in the form of deposits in approved 
banks and trust companies. The fund carries with it an assess- 
able liability of 100% to every clearing member. The expenses 
of the Corporation are covered by charges to its members on 
the money value of such securities as are cleared, interest on 
money on deposit, charges on shares cleared in the Night 
Branch, and fines. Under its Constitution and rules, the 
Stock Clearing Corporation is administered by its President 
and a Board of Directors largely composed of members of the 
Governing Committee of the New York Stock Exchange. 
The Night and Day Branches.—The work of the Stock 
Clearing Corporation is performed by two different branches. 
Its Night Branch is the earlier “Clearing House of the New 
York Stock Exchange,” rechristened and modified in certain 
details so as to fit with the present more inclusive system of 
clearance and settlement. Its Day Branch, on the other hand, 
dates from 1920 and performs, as we shall see, a wide variety 
of functions and services. The names of these branches are 
derived from the fact that the former operates in the evening 
beginning about 6 p.m., while the latter performs its work in 
the daytime from g A.M. to about 5 P.M. Where the Night 
Branch clears both money and security amounts, the Day 
Branch clears only money amounts and for this reason more 
closely resembles a bank clearing house. Also, in the process 
of handling a given Stock Exchange contract, the Day Branch 
begins its operations where the Night Branch leaves off. The 
work of the Day Branch will be considered in Chapters XIII 
and XIV, while that of the N ight Branch will constitute the 
theme of the present chapter. 
Scope of the Night Branch Security Clearance. By no 
means all the securities listed on the New York Stock Ex- 
change are cleared in the Night Branch. Bond clearances are 
made only in the most active listed issues. Moreover, out of