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.

640 APPENDIX as far as the Clearing Corporation was concerned, it showed itself extraordinarily able to handle the huge volume of business imposed upon it. But the confusion on the floor of the Exchange in regard to ‘he identity of other parties to many contracts, prevented Exchange firms from making out promptly and accurately the ordinary docu- ments necessary for the Clearing Corporation to perform its work. A stock clearing house, of course, resembles a bank clearing house in that all its items must balance. When many Exchange firms could not for the time being state with what other firms they had dealt, there was danger that the Clearing Corporation could not perform its ordi- nary and most necessary work. The Clearing Corporation, in addition to stimulating houses whose delays were holding up the whole community, itself stepped into the breach by creating a special account upon which, as it happened, my own name was by agreement placed. Through this account were put the various contracts on which the second name was lacking. Still later the Clearing Corporation directly accepted delivery of stock on all such contracts itself, thus vastly relieving this problem. At the peak load, the Clearing Corporation took in from the member firms many thousand shares of stock, and paid out thereupon several millions of dollars. It is very creditable both to the Clearing Corporation and to the Exchange firms that this whole tangle was ultimately un- raveled without any loss therefrom to the Stock Clearing Corporation. The Clearing Corporation also performed a valuable service to the financial community in undertaking even in the midst of the panic a clearance of bonds, for at this time stock market fluctuations had rendered certain convertible bond issues—particularly that of the A. T. & T.—very active and contracts in them were becoming seri- ously congested.” CHAPTER XIII Security Delivery and Transfer (XIIIa) The office-to-office delivery of securities between New York Stock Exchange members was the custom of the New York stock market from its earliest days until very recently. The long adherence to this wasteful and uneconomic system of decentralized security deliveries may be attributed in part to the less deliverable character of American registered shares, as compared with French or German bearer shares, and also perhaps to the contagious direct delivery practice of the London Stock Exchange. In 1913-14 Mr. S. F. Streit then a Governor of the New York Stock Exchange and later President

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