The work of the Stock Exchange

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Monograph

Identifikator:: 1831284952

URN:: urn:nbn:de:zbw-retromon-225876

Document type:: Monograph

Author:: Meeker, James Edward http://d-nb.info/gnd/126597340

Title:: The work of the Stock Exchange

Edition:: Revised edition

Place of publication:: New York

Publisher:: The Ronald Press Company

Year of publication:: [1930]

Scope:: XVI, 720 Seiten; Illustrationen, Diagramme

Digitisation:: 2022

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Chapter XII. Comparison and security clearance

Collection:: Economics Books

COMPARISON AND SECURITY CLEARANCE 345 they did not result in such direct deliveries of securities and payments of money. Even in the narrower and legal aspect of the matter, however, the courts have held that contracts which show an intent to deliver are legal. That cleared contracts in Stock Exchange securities show such an intent to deliver is at once obvious to anyone who will read a typical clearance sheet with its exchange deliver and receive tickets. An authority in economic matters has said :2° There is no such thing known on any of the reputable exchanges as a contract under which delivery is waived: one obstacle to an under- standing of this lies in the way in which transactions are cleared through the Clearing House; but an attempt to prove the legitimacy of the method of clearing would be useless to one who does not under- stand the way in which bank transactions, for instance, are cleared. It is as ridiculous to say that the clearing of many contracts for delivery on the Stock Exchange, and the settlement of these trans- actions by a payment of balances, both of stocks and cash, indicates that such transactions are not of a perfectly genuine nature as it is to assert that because the Clearing House for the New York banks arranges for an offset of checks and the payment of only a small balance of cash, therefore, the banking business in New York is not concerned with legitimate business. Speculation could continue without a Clearing House, and in fact, the New York Stock Exchange was very late in adopting this device. Nothing as to the legitimacy or illegitimacy of transactions can be determined from the mere adoption of an up-to-date business method. The clearance of security contracts must, therefore, be looked upon as one of the great financial developments of the past century, effecting as it does an economy of time, labor, and capital in the major market places of the modern world. For all its technical terminology and its clerical detail, it is based on the simplest common-sense principles. Without the employment of these principles by the banks and the security and wholesale commodity markets, the conduct of modern pro- duction and distribution with the present ease, safety, and pee C Emery, “Should Speculation be Regulated by Law?” in Journal of

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