646
APPENDIX
or the New York Curb Market Exchange or any other exchange or if
the sale is at public auction, the Stock Clearing Corporation may pur-
chase for its own account the securities sold. The proceeds of sale shall
be applied by the Stock Clearing Corporation to my (our) debit balance
and I (we) shall remain liable to the Stock Clearing Corporation for any
deficiency.
Withess : ..
-..Firm Signature.
(XIVb) The longest “when issued” settlement ever conducted by
the Stock Clearing Corporation occurred over a period of 16 months
in the securities of the Missouri, Kansas and Texas Railway, whose
reorganization was delayed by the Interstate Commerce Commission.
Trading in the M. K. & T. securities “when issued” began on the
Stock Exchange December 1, 1921, and did not terminate until April
3, 1923, when the definitive certificates were available for delivery.
During this long interval the Stock Clearing Corporation conducted
in the “when issued” contracts 9g markings to the market and 25 inter-
mediate clearances altogether.
(XIVc) The Annual Report of the President of the New York
Stock Exchange for 1929-30 (p. 112) contains the following table
relating to obviation of banking accommodation bv the Stock Clearing
Corporation:
Calendar Total Value
Year All Contracts
(millinns of &
1921.
(922...
1923...
1924... .
1925... .
1926... .
(927... .
1928. ....
[{O20Q.
ee
ce 412
Funds Actually
Required
(millinng of
3
zc « N21
Funds %
Obviated Obviation
(millions of $)
73.0%
74-5
75.0
79.6
82.9
83.4
84.3
85.1
81.7
The great actual and percentage increase in this obviation of
bank funds is attributable not only to the expanding volume of business
on the Stock Exchange during the years noted, but also to the widen-
ing scope of money clearance services performed bv the Stock Clearing
Corporation.
(XIVd) The Annual Report of the President of the New York
Stock Exchange for 1929-30 (p. 112) contains the following table
relating to the obviation by the Stock Clearing Corporation in the
number of checks drawn in settlement of the business of Stock
Exchance members:
