THE BOND MARKET 
263 
to Exchange Place. New and complete as these latest quarters 
of the bond market are, it would seem from past experience to 
be tempting Providence to prophesy just how long they may 
prove satisfactory and adequate in future years. 
Recently, however, the growth in the bond business on the 
Stock Exchange has by no means kept pace with the growth of 
the business in shares, owing to the combination of such factors 
as the rapid retirement of the U. S. National Debt, the slacken- 
ing of emergency European government financing, the popular 
preference for shares rather than bond investments on the part 
of the American public, the retirement of many commercial 
banks as bond buyers during periods of high interest rates, and 
the preference of American corporations for share rather than 
bond financing.” 
The Active Bond Market.— The present Stock Exchange 
trading room for bonds extends from the old Board Room 
southward along New Street to Exchange Place (Plate 8). Its 
walls are lined with the telephone booths of Exchange mem- 
bers, which connect their offices with the market by private 
wire. It is divided by partitions which consist of additional 
telephone booths, into three separate markets—for active, inac- 
tive, and foreign bonds respectively. 
The active bond market consists of a railed space where 
the “bond crowd” assembles. In its essentials it is conducted 
much as are the markets for active stocks, with open bidding 
and offering by Exchange members, However, the active bond 
market is provided with quotation clerks (employees of the 
Stock Exchange) who as a convenience to dealers note the 
price of bids and offers, with the name of the member who 
made them. In the active bond market, this giving of bids 
and offers to the Exchange clerks who handle the quotation 
cards in no way puts such bids and offers “on the floor.” The 
practice serves simply to enable a particular broker to be re- 
minded of them by the clerks, and to assist other brokers who 
"7 See Appendix Xb.