666 
APPENDIX 
Simmons, then President of the New York Stock Exchange, declared: 
“ . . stock exchanges, by reason of their ability to distribute securities 
among investors, have in the past been able to direct an almost constant 
flow of capital into American commercial and industrial companies, But 
-he stock exchanges have not been to the same extent able to perform a 
similar function for agriculture, because of the fact that there are practically 
no such agricultural securities. . . . 
“. . . the gradual development of cooperative marketing in this country 
may sooner or later take the form of stock corporations, and if it does, 
the way lies open through our established stock exchanges to direct capital 
Into agriculture just as in the past it has been directed into commerce and 
manufacturing. I have always felt myself that some form of share financing 
for agriculture, if it could be soundly devised, might in a financial way 
prove of real benefit. The farmer, as I see it, does not need new creditors, 
but rather new financial partners. In consequence, the farmer’s financial 
salvation would seem rather to consist in the issuance of shares of some 
sort than in the continued issuance of mortgage and other bonds, under the 
burden of which he already suffers. The man who can invent a feasible 
way to enable our farmers as a class to obtain additional capital inex- 
pensively from new share partners will, in my opinion, have performed a 
most valuable service for agriculture, by opening to agriculture an imme- 
diate access through the stock exchanges to the savings of the entire 
American people.” 
CHAPTER XVIII 
The Stock Exchange as an International Market 
(XVIIIa) This peculiar character of London security quotations 
arises largely from the way the “jobber system” operates on the 
London Stock Exchange. In that Exchange, a broker desirous of 
purchasing or selling securities for a customer does not deal viva 
voce with his fellow memberg as on the New York Stock Exchange. 
Instead he approaches the “jobber” or dealer in the particular security 
and requests the current bid and offer for the issue, without stating 
whether he is a buyer or a seller. The jobber proceeds to quote him 
the bid and offer (say, 50-5034), and after subsequent higgling may 
quote them closer (say, 5014-5034). If satisfactory to the broker, 
he then tells the jobber whether he wishes to buy or sell, and how 
much. The jobber is obliged to take stock at his bid or furnish it 
at his offer. The jobber’s bid and offer are considered more public 
information than the price of an actual sale or purchase, and for this 
reason are quoted in preference to such sale or purchase prices. Such 
a custom on the London Stock Exchange is also justified by the enor- 
mous number of relatively inactive issues listed there. for which bids