MONEY CLEARANCE AND SETTLEMENT 385 
balance he draws a single draft against the Stock Clearing Cor- 
poration. The savings which this method make possible are, 
2s we shall see. enormous. 
Cleared Security Debit Contingent Lists.— Naturally it is 
highly important that the Day Branch get an accurate idea of 
the magnitude of each clearing member’s prospective money 
transactions in the money settlement each day, before this set- 
tlement actually begins. This is the reason for its use of the 
“contingent lists.” 
We have seen? that in cleared securities the Night Branch 
in the course of its security clearance reduces all contracts 
between Stock Exchange members to balances which issue by 
issue are priced at “delivery” or “settlement” prices. Thus, 
the first thing each morning, each clearing member knows just 
what security balances he must deliver and receive that day, 
and consequently how much money he will take in and pay 
out in the settlement. Accordingly, he makes out a “debit con- 
tingent list” itemizing all the security balances which he must 
receive and pay for. These “debit contingent lists” for cleared 
securities are printed in black on white paper (Figure 43), and 
for cleared bonds in black on pink paper. Attached to this 
form 1s a perforated slip for “failures to receive.” On the 
back of the debit list is an assignment form whereby the firm 
making out the list pledges the securities mentioned on the list 
to the Stock Clearing Corporation, to secure the latter for sums 
due to it from the firm.? 
These contingent debit lists for securities cleared at the 
Night Branch are made out early in the day and sent to the 
Day Branch. The total money amounts of contingent debits 
are then entered on each member’s Day Branch “record sheet” 
in the columns provided for such entries. Thus, as far as the 
money value of deliverable balances in cleared securities is 
concerned, each member’s “record sheet” at the beginning of 
"2See Chapter XII, p. 329 
8 See Avpendix XIVa