The work of the Stock Exchange

Bibliographic data

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 XIV. Money clearance and settlement

Collection:: Economics Books

MONEY CLEARANCE AND SETTLEMENT 403 ness will run up credits of approximately $63,855 and debits of $58,700. If “failures to deliver” occur, these figures will of course be altered in fact to that extent; just this, we will suppose, occurs with the $2,700 debit item for the City of Rome bonds, which are therefore marked as “fails” on the record sheet. With this exception, all these contingent debits and credits become actual debits and credits during the ensuing day, as deliveries of securities are made. But other items also enter the situation. Jenkins, we will suppose, decides to clear two $100,000 loans through the Stock Clearing Corporation; the latter pays off the principal and interest of his old loans for him and debits him $100,016.67 for each. Later, however, two new loans are made which result in the establishment of two $100,000 credits. Since one loan clearance was effected between banks, and the other between lending Stock Exchange members, the first is entered opposite “Bank Loans” in each case, and the second under “Memo Loans.” In addition, Jenkins & Co. has sent securities worth $14,000 to non-member banks through the Central Delivery Department, and has received from such banks through it $33,246.90 of securities; these respective credit and debit items are entered opposite “Central Delivery.” Finally, as the result of a special clearance of “when issued” security contracts, Jenkins & Co. obtains a credit of $5,391.91. Thus, at the end of the day, Jenkins’ account shows total actual debits of $289,280.24 and total actual credits of $283,- 246.91. Jenkins therefore draws his final draft against the Stock Clearing Corporation for $6,033.33 (Figure 47); the draft is signed by an official of the Stock Clearing Corporation and thus the money clearance and settlement of Jenkins account in the Day Branch for that day is completed. Procedure with Insolvencies.—Insolvencies of New York Stock Exchange members, and particularly of those who are clearing members of the Stock Clearing Corporation, have

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