THE COMMISSION HOUSE 
of brokerage houses and banks, but also of the given customer 
himself and other similar customers, requires a prompt re- 
sponse by him to calls for more margin. 
The Pledging of Customers’ Securities.—The marginal 
customer must also agree that all securities purchased and 
carried on margin for him by 
his broker, or those deposited as 
margin on his account, may be 
loaned by the broker, or may be 
pledged by him, either sepa- 
rately or together with other 
securities, without further no- 
tice from the broker.” Except 
for the constant hypothecation 
at the banks of securities pur- 
chased on margin by customers, 
the broker would be unable to 
extend credit to his customers 
and enable them to purchase on 
margin.® But securities which 
the customer has purchased 
outright and has left in his 
broker’s hands, cannot be pledged for loans in this way without 
the customer’s consent, since they are entirely the customer’s 
property, unless of course they have been used to furnish 
margin on the customer’s account. 
Blank’s order for 100 Southern Pacific, let us suppose, is 
limited to the price of 134, and is marked “G.T.C.” He hands 
it through the window to the order clerk, who telephones it to 
the Stock Exchange over the firm's private wire direct to the 
floor. The order is received there at the firm’s telephone booth, 
and given by the telephone clerk to the firm’s floor broker, who 
at once goes to the Southern Pacific post, executes the order,® 
7 See Appendix XVb. 
8 See Chapter XI, p. 282. 
? See Chapter VI, p. 162