330 THE WORK OF THE STOCK EXCHANGE
thus be proved by the total of 2,400 shares of stock appearing
on both sides of the sheet. Recently, such balances have been
entered and handled on separate sheets in order to facilitate
the subsequent work of the Day Branch; for the sake of sim-
plicity, however, the specimen clearing sheet here used has
heen made out in the old way.
The Cash Extensions.—Beside the entry for the stocks
is a column for the prices at which they were bought and sold.
Ordinarily this column is not filled, since the amount of the
cash extension next to it gives this information. To make the
sheet more intelligible to the layman, however, the prices have
been entered in the typical sheet in question. The cash exten-
sion represented by each stock item is, of course, determined
by multiplying the price by the number of shares; 100 shares
of Reading at 10434 are worth $10,475; 100 shares of Steel
at 150 are worth $15,000, etc.
The Stock Clearing Corporation will direct Jenkins & Co.
to receive and deliver, not all the stocks it has bought or sold,
but only the stock balances. Thus, Jenkins & Co. will have
only 300 instead of 2,200 shares to deliver and obtain payment
for, and only 200 instead of 2,100 shares to receive and pay
for. But Jenkins & Co. cannot tell to what firm the Stock
Clearing Corporation may, direct it to deliver its balance of
300 Steel, or from whom to receive its balance of 200 Reading.
Consequently, it would be at a loss to know what price to put
upon these stock balances, were it not for the use of the “de-
livery prices” already mentioned. On this particular day the
delivery price is 150 for Steel, and 105 for Reading. Conse-
quently, Jenkins & Co. puts down on its sheet $45,000 as the
value of the stock balance of 300 Steel it has to deliver, and
when it delivers this stock to the firm or firms indicated by the
Stock Clearing Corporation it will expect this sum in return
for its stock. Also, Jenkins & Co. will pay $21,000 for the
200 shares of Reading which it has to receive.
