APPENDIX 
600 
the stock of any bank, corporation, or joint stock association incor- 
porated or organized under the laws of the United States, or of any 
State, is not void, or voidable because the vendor, at the time of 
making such contract, is not the owner or possessor of the certificate 
or certificates or other evidence of debt, share, or interest.” 
The Floor Trader and the Specialist 
CHAPTER VIII 
(VIIIa) The necessity of dealers to “make a market” is recog- 
nized by all leading stock exchanges except the Paris Parquet where, 
because of the unique governmental monopoly in stock brokerage 
which they possess, the Agents de Change are forbidden to deal for 
themselves and are brokers pure and simple. This does not mean 
that dealers are absent from the Paris official market, for floor clerks 
of the Agents and also outside parties operating through the Agents 
de Change can, of course, buy and sell for themselves. Nevertheless 
this rigid system, however in accordance with the peculiar conditions 
of the Paris market, makes the speedy and dependable execution of 
orders on the Parquet much more difficult than in London or New 
York, where stock exchange members acting as dealers are constantly 
on the floor and ready at practically all times to make an immediate 
market in any amount of any listed security themselves. 
(VIIIb) The New York Stock Exchange has issued three studies 
in pamphlet form upon the stock sales tax. The first two, issued in 
1920 when it was proposed in Congress to raise the tax, were entitled 
“The Effect of Taxing Stock and Bond Sales” (a publication of the 
former Committee on Library of the Exchange) and “In re H. R. 
4157” (a brief by counsel for the Exchange). 
In 1926, on the occasion of the Congressional revision of Amer- 
ican internal revenue schedules, the Exchange made a comprehensive 
study of the tax, which was published under the title of “Memoran- 
dum submitted to the Ways and Means Committee of the House of 
Representatives and the Finance Committee of the U. S. Senate on 
behalf of the New York Stock Exchange, praying for the repeal of 
the stamp tax on the sale or transfer of stock as embodied in Public— 
No. 176—68th Congress (H. R. 6715), Title VIII, Schedule A, Para- 
graph 3.” 
In summary, the Exchange's principal arguments for the repeal 
of the tax were that the tax is and always has been reserved for war- 
emergencies, and never before has been maintained in effect so long 
after a war-emergency has passed: that the tax is actually paid, not