MONEY CLEARANCE AND SETTLEMENT 407 
form of unsecured “day loans” is greatly reduced. In addi- 
tion, the stock market is not warped out of its normal economic 
functions by an insufficiency of bank accommodation. 
6. Such large economies in labor are effected that the Stock 
Clearing Corporation can justly be considered one of the lead: 
ing labor-saving devices in American finance. Under prevail- 
ing conditions in Wall Street, employees can be paid more 
because fewer and more intellicent workers are required. 
THOUSANDS 
OF CHECKS 
4500 — 
OBVIATION OF Cli=Ci.= 
% 
100 
- CHEZIKS 
IMRVIATFD 
500 
2500 
1500 
ME. 
ZHECK! 
™ 
80 
80 
7] 
500 — J 60 
1921 1922 1923 1924 1925 1926 1927 1928 1929 
Figure 50. Annual Obviation of Number of Checks by the Stock Clearing 
Corporation 
7. The above economies effected by the Stock Clearing Cor- 
poration, plus the keen and constant supervision it gives to the 
whole settlement process, have the effect of greatly speeding 
up all these operations. Any settlement system can in a sense 
move only as rapidly as its slowest member, but if there is 
some one to detect and stimulate its slowest units, all the more 
efficient units are safeguarded thereby from delay. 
8. As one conspicuous item, the huge obviation of the num- 
ber of separate checks which need to be drawn (Figure 50)*° 
9 See Appendix XIVd,.