362 THE WORK OF THE STOCK EXCHANGE 
loans” contracted by Stock Exchange members, the Stock 
Clearing Corporation in 1921 undertook to clear call and time 
loans, and by intervening as an intermediary when loans have 
to be shifted, to render unnecessary the use of certified checks 
from “certifying banks.” 
The “Lending Members.”—The Stock Clearing Corpora- 
tion undertakes to clear loans only for its regular clearing 
members. But in addition to these, who in the main appear in 
loan clearances as borrowers, the representatives of financial 
institutions that lend money on call constitute a class of “lend- 
ing members.” These lending institutions have signed an 
agreement with the Stock Clearing Corporation which permits 
the routine of loan clearance to be carried on smoothly and 
efficiently. For the use of these “lending members,” booths 
are provided in the Day Branch of the Stock Clearing Cor- 
poration, wherein the lenders’ representatives can receive or 
deliver security collateral and checks for their money amounts. 
This loan clearance is not compulsory but optional with all 
parties concerned. 
The Return Loan Agreement.—In explaining the clear- 
ance of loans, the simplest method is to start with the opera- 
tions by which an existing loan is paid off; next, to consider 
how the Stock Clearing Corporation holds the collateral and 
enables it to be shifted and withdrawn in whole or in part; and 
finally, to describe the methods employed in making a new loan. 
The repayment of loans starts at 10 A.M. each full business 
day. Of course, a loan may have to be paid off because either 
the lender has called it, or because the borrower desires to pay 
it off. Notice to this effect is given direct between borrower 
and lender, usually over the telephone. When a loan is paid 
off by a non-member of the Stock Clearing Corporation, the 
borrower must obtain his security collateral from the lender 
by delivering at the latter’s office a certified check for the prin-