360 THE WORK OF THE STOCK EXCHANGE

would make all deliveries to it and receive all deliveries from
it. This would make the Stock Clearing Corporation responsible
 for accepting delivery on all security certificates, in respect
to their technical deliverability, and would in proportion lift
this responsibility from its members.
It might then be possible to establish a central depository,
and allow Stock Exchange members to keep securities on
deposit therein subject to check, just as is done by everyone
every day with their money funds in bank deposits. Such a
practice would enable Stock Exchange members. to withdraw
securities by “cashing” a security check, and would also permit
 the delivery of a security from one member to another by
the delivery of a security check to the receiver, who could then
“cash” it and draw out the security, or “deposit” it to its
security account. In this way, as in the Giro-Effekten-Depot
of the Bank des Berliner Kassen-Vereins, securities could be
kept securely guarded in vaults, instead of circulating round
and round the financial district each day, even while the ownership
 of the securities was being constantly changed from one
member’s account to another. A final step would be the inclusion
 in the system of the securities which serve as loan
collateral.
Radically novel as these ideas may perhaps sound to the
veteran of Wall Street brokerage or banking, they have been
actually practised to enormous advantage on the Berliner Borse
and in the Bank des Berliner Kassen-Vereins for many years.
There seems no inherent reason why some day listed securities
in New York cannot be handled by these time-tested German
methods with the enhanced convenience, safety, and economy
which is already familiar to us all from the ever-present example
 of check and deposit banking.

Clearance of Loans.—The Stock Clearing Corporation
provides facilities for the clearance and settlement of security
collateral loans as well as of Stock Exchange purchase and