400 THE WORK OF THE STOCK EXCHANGE
in terms of money, the process of clearing them is closely
similar to that effected by bank clearing houses everywhere in
the world.
There remains of course the final task of money settlement.
This is accomplished with equal simplicity. Each clearing
member ascertains whether his Stock Clearing Corporation
account has a final credit or debit balance, and for how much
money. He then fills out the final receipt (Figure 46). If a
creditor he scratches out the word “check” and if a debtor the
words “credit memorandum” upon it, and fills in the money
amount of his final balance. If the clearing member has a
final debit balance. he makes out his check to the order of the

Steck ibacing Cumoraliion
SLECEN Yoo 8 Brot Street Jo, 03322
Nir York) ub 104 p09
I ” A oe —
thin brian lors
Stock “learin® Cevroration

i

24 As

Aer Hai isn Al RSA

a 7.2%

elon

Figure 47. Draft.on the Stock Clearing Corporation

Stock Clearing Corporation for its amount. If, on the other
hand, the clearing member has a final credit balance, he draws
a draft or credit memorandum for its amount against the Stock
Clearing Corporation (Figure 47). The final receipt, together
with the check or draft, is then dispatched to the Corporation.
The receipt form is made out in duplicate; one part is retained
by the Corporation, and the other is returned to the clearing
member. The Corporation deposits the checks which come
into it during the day, in the several banks with which it has
accounts. ‘On receipt of the drafts or credit memoranda drawn
against it, in the course of the day’s business, the Stock Clearing
 Corporation checks the amount of each against the mem-