Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1869-11-17

, ness for the simple reason that tn
New York Gold Exchanc is tempora
rily embarrassed and doing no bnsI
ness. This shows the necessity of
general market. The great opera
tions, however, will doubtless be con
fined to the Now York Gold Exchang,
as soon as VIC get back into our oil,
grooves.
THE GoLDRooM AND IT'S APPOINTMENTS
AT certain specified hour each da,
the members of Exchange assemble il
their room to buy and sell gold. None
but members are admitted to thes,
privileges, though a gallery is set apart
IN which Spectators may locate them
selves 10 witness the transactions.-
The President or one of the Vice Pres
idents, stands at the desk with heavy
gavel in his hand TO preserve order
! The Secretaries busy themselves ia
recording the hetransactions made. Two
lines of telegraph connect the room
with all parts OF the world, anC
constantly announce the fluctuations
of the market. Another ingenious
telegraphic arrangement flashes the
tidings Of every change instantaneous
iy into all the principal bankers and
brokers Offices on the street, record
ing the information in legiblo man.
ner on an endless slip Of paper. A
crowd Oftwo or three hundred excl.
ted men-brollers or their representa-
tives--is gathered in the circular en-.
closure directly in front of the Pres.
ident.
soUARIN0 ACCOUNTS.
In the Exchange there are no set
Elements made, Nobody stops to re-
ceive money or deliver gold Smith
& Jones offer half million at 32.-
Brown & Williams cry out "Sold. "
Each enters note of the transaction
in memorandum book, and it be-
comes a binding contract between
them, enforcible by the rules of the
body At the close Of the Exchange
the former goes to the latter's office
and gives him n ticket for the gold
All the transactions OF the day are
settled in this manner, and then each
dealer makes up a statement of what
he has bought or sold, or both during
the day, the various prices given or
received. the value Of each transaction
in currency, and the gross amount due
to or from him on the days operation.
The statement, accompanied by the
tickets given and received, is sent to
the Gold Clearing House. When all
the statements are in, tho officers Of
the Clearing House compare one with
another and verify them. Then a bal
ance is struck between each dealer
and all the others, aud the gross
amount due toor from each one is set
tied at once and in one payment, the
Clearing House distributing to each
creditor his total dues and collecting
from each debtor bis Indebtedness.
TIE "LoSG" AND the SHORT OF THE
MATTER.
Frequently dealers tempted by the
high prices prevailing and the pros
poets ola decline, sell moro gold than
they have got, trusting to make up
the deficiency when the price falls
Such dealers are said to be "selling
short, "and one who has sold is "short"
exactly the amount he actually has.
On the contrary, the dealer who has
gold on hand nnsold is "long." "Cash
god' is the rea,coin, in contradistinc.
tion to a supposiiitious amount bought
or sold, but which is never expected
TO be delivered or received but merely
the difference between the price at
tho time of delivery. Thus one deal
er sells $4,000 at o'clock to-day at
13l. The clearance takes place at
noon tomorrow, when the price may
be only 1870 The seller thus makes
one cent on dollar and has n claim
against the purchaser for 500 at the
time of settlement. Or, if the price
advances cent meantime, he loses
500.
"MARGIHs.
A "margin" has the same signif.
cence in either gold, stock or produce
transactions. 1t is simply a percent
age deposited to conauctuations Thus
a broker who has sold 100000 gold
at say 1876, is permitted by the rules
Of the Exchange TO demand n margin
inom the purchaser, should the mar
kct be declining, until the gold can be
delivered ard the contract consumma.
ted. lfan outsider conceives n desire
to dabble in gold or stocks, he must
20 to a broker and employ him to
make the transactions. We win sup.
pose that gold is selling at l39. Mr.
John Smith thinks the price will soon
advance, and that BY buying now he
can speedily make "good thing -
He goes to broker and orders him to
buy, let us suppose, s500,000 at the
market price, l30 This gold will
therefore cost S650,000 in currency. |
The broker, before he will undertake |
The transaction, requires Mr. Smith to /
put amargin, that is a certain per cent /
Of this sum 8, 10, Is or 20 per cent. as
the case may be On gold, 5 per cent.
IS considered very good margin
On stocks 70 and ee5 Por cent is fire.
quontly demanded. In tii5 case SUP.
posed Mr.. Smith is called upon TO dc. 4
posit with the broker his certified |
check for 50, 500, being 5 per cent. on
the currency value Of gold to be
bought Thisis the "margin" on which |
he purchases half a million of gold
The broker makes the purchase and |
pays for IL in full. lie then takes the |
gold certificates ho receives TO bank /
aud deposits them as colectoral for
a loan to replace the money he has in
vested in The operation.
GOLD UP.
II the market price Of gold advanc-
os, Mr. Smith may remain the nomi.
nal owner OF s50O,0OO in gold as long
as be pleases lie is "long" TO that
amount. When he thinks gold win
advance no higher. he orders his bro
kers TO sell. The broker sells, we will
suppose, at 1874, and realizes s675, 200
in currency. With this sum he first