APPENDIX 
643 
more for bank deliveries to Stock Exchange firms than for deliveries 
from the latter to the former. Subsequently in 1929 and under a 
revised and improved system, additional leading banks entered into 
agreements with the Stock Clearing Corporation to employ the service. 
The Stock Clearing Corporation first obtains notification from the 
hanks that they will deliver through it, and contingent lists of the 
tems to be delivered are put at its disposal. Comparison on all items 
0 be delivered is effected by the passage of a “three-way” ticket from 
Exchange firms to the banks, who keep one part of the ticket and 
return the other two to the Stock Clearing Corporation. The Central 
Delivery Department then acts as intermediary between the banks 
and the cages of the Day Branch; in behalf of Stock Exchange firms 
it receives security deliveries from the banks, in each case turns 
hose securities over to the cage where the receiving Stock Exchange 
member’s account is kept, obtains at the same time from the cage 
sufficient funds from the member’s accommodation there to pay for 
he securities, and pays the bank for the security deliveries with its 
sown checks. Stock Exchange member accounts in the Day Branch 
cages are debited by means of deliver tickets made out by the Central 
Delivery Department on behalf of the banks. 
When a Stock Exchange firm delivers securities to a bank through 
‘he Central Delivery Department, after a contingent list is furnished 
to the Stock Clearing Corporation and comparison on its items effected, 
the Exchange firm delivers the securities to the Central Delivery 
Department and obtains credit for their money amount at its cage in 
the Day Branch. When the bank calls at the Central Delivery De- 
partment, the securities are turned over to it against its payment 
for them by its own check. 
The purpose of this bank-Stock Exchange centralized security 
delivery system, with its accompanying money clearance and settle- 
ment, is to effect economies in time, labor and credit, and to afford 
to both deliverers and receivers superior protection and safeguards. 
To anyone familiar with the source and extent of such economies in 
other phases of the work of the Stock Clearing Corporation, as set 
forth in preceding pages of the present study, the usefulness of these 
particular operations should be obvious. It has been the practical 
demonstration of these benefits which has subsequently led the lead- 
ing New York banking institutions to avail themselves of the facilities 
‘hus placed at their disposal by the Stock Clearing Corporation. Re- 
cently, the facilities of the Central Delivery Department have been 
similarly extended to non-Stock Exchange member banking institu- 
tions of New York for handling security deliveries between themselves.