506 THE WORK OF THE STOCK EXCHANGE 
darkness. By such means the New York and London markets 
particularly were normally kept in the closest touch with each 
other. 
Dealings Between New York and London.—New York 
time, however, is later than London time by five hours less 
four minutes and one second. Thus, when the Stock Exchange 
of London opens, it is long before the 10 o'clock opening of 
the New York Stock Exchange, which occurs at 2:56 p.m. 
London time. Although the Stock Exchange in London closed 
at 3 p.M. (London time), its market in “Yankee rails’ con- 
tinued outside the Exchange till the 3 o'clock closing of the 
New York Stock Exchange, which occurred at 7:56 P.M. in 
London. In consequence, 2 o'clock London quotations in 
American issues used to reach Wall Street brokerage offices 
about 9:20 A.M. (New York time), and gave the earliest lead 
here as to the likely trend of prices on the New York Stock 
Exchange that day. Sometimes, however, the price trend in 
London was not followed in New York. 
London quotations required skilled interpretation, since 
the London stock ticker recorded only bids and offers but no 
prices, and never the number of shares sold.” Also, for con- 
venience in dealing, the pound sterling was for quotation pur- 
poses always taken at $5.00, and the difference between this 
figure and the actual current exchange rate was adjusted in 
the London price quotation. Thus, with exchange at—say— 
$4.87%% to the pound, a stock quoted at 50 in London would 
be quoted 4834 here, and so on. 
Changes in the Arbitrage System.—The old business of 
arbitraging from the floor of the New York Stock Exchange 
caused constant infringements upon its commission law,® since 
as a rule it was carried on “joint account” between a New 
York Stock Exchange member here and some non-member of 
this Exchange abroad, with the result that the Exchange mem- 
2502 Angers AVI 0