1921. ...
1922.....
1923.......
1924......
[925.......
926........ .
TO27. vvrusiomn
928..........
102Q..... .

[tems Theoretically
 Requiring
 Checks

258,454
eal
47,5
3,368
5,502
9,77
I~ Bu
, Mole
1,242,130

APPENDIX

Number of
Checks Actually
 Required
34,609
50,250
3¢,683
y. £82
3 oe

i

J
5
-

0,

Number of
Checks Obviated


603,815
940,2F3
374,853
2 127,416
2 685,709
2.413,933
2,886,866
3,650,371
4,150,484

%
Obviation

93.0
98.0
97.6

647

CHAPTER XV

The Commission House

(XVa) The ceaseless tendency in America to perfect labor-saving
devices has at length directed its attention to the broker’s stock
hoard. Recently a mechanical board operated by electricity has been
perfected, and in the course of time the board boy’s occupation may
become as lost as Othello’s. The new mechanical quotation boards
can be operated even at distances from a central station, and thus
the new device may succeed not merely in supplementing but even in
rivalling the existing stock ticker system.
(XVb) The broker's ability to loan or pledge securities carried
in his customers’ marginal accounts, even after the customers’ consent
 has been obtained, has long been considerably restricted by the
ethics of the brokerage business. Here again custom and precedent
have gradually crystallized into specific regulations in the Stock
Exchange Constitution (Rules, Chapter XII):
Customers’ Skc. 2. The improper use of a customer’s securities is in-’
 consistent with just and equitable principles of trade.
Agreements SEC. 4. An agreement between a member and a customer,
securities. authorizing the member to pledge securities, either alone or
with other securities carried for the account of the customer,
either for the amount due thereon or for a greater amount, or
to lend such securities, does not justify the member in pledging
or loaning more of such securities than is fair and reasonable
n view of the indebtedness of said customer to said member.
Sec. 5. No form of general agreement between a member
and a customer shail warrant the member in using securitics
carried for the customer for delivery on sales made by the
member for his own account, or for any account in which the
firm of said member or any general or special partner therein
s directly or indirectly interested.
(XVc) For a great many years it was the custom for Stock Ex-‘hange
 firms to report on their confirmations the names of the other