406 THE WORK OF THE STOCK EXCHANGE
and composition of misunderstandings concerning contracts
between members.
2. By clearing transactions in the most active securities,
about 50% of the security deliveries otherwise necessary are
obviated.

3. By installing facilities for central delivery, important
savings of time, labor, and overhead expense are effected for
members and for New York banks.

oF DOLLARS OBVIATION OF FUNDS
110

—

%
100

20

"RCENTAG
OF FUNDS
DBVIATED

o
2

wl

B06

70

'
AMOUNT OF
JNDS OBVIATED

2

80

10 we Iso
1921 1922 1923 1924 1925 1926 1927 1928 1929
Figure 49. Annual Obviation of Banking Accommodation by the Stock
Clearing Corporation

4. By issuing transfer and exchange receipts, sometimes
large amounts of stocks and bonds are rendered liquid and
assignable even when the certificates themselves are in transfer.
5. By the clearance and settlement of securities and money,
huge savings in the use of banking accommodation are made
(Figure 49).*® In consequence, the need of Exchange members
 to secure temporary accommodation at the banks in the

18 See Appendix XIVe.