New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-10-15
STOCK ExCHANGE CLEARANCEs.


tn. LONDON SYSTEM ADvocArED-Two sErtiE-
MERITS A MONTH FOR TRANSACTIONS ON AG-
COUNT. |I.f
The Governing Committee of the Stock Tx
change have boen discussing the reopeDing OF the
Exchange measures for tho clearance OF their socG
transactions. They have therefore. devised system
OF buying aud selling cloarsnces somewhat similar 70
that employed on the London Stock Exchange. THO
new arrangement permits transactions Tor account
which may be settled twice month Ths method Is
embodied the following proposed article 70 be ADDED
10 tho present regulations Of the Stock EXCHANGE inc
members concur
In addition 20 present methods OF buying and selling
stocks members may buy aud sell " for account Trans
actions tor account may DO settled twice month on
such days aud in such ways shall be prescribed ny
the Governing Committee. Wherever che regular SCI.
fling day occurs on Sunday or any egai hohody' IL
snail be deferred to the next regular business day.
l. Each new account shall commence three business
days to the coming settling DAY interest on &c
counts running three DAYS shall accrue to The
seer at the rate p SIX per cent per annnn 70 % cce
pOsts n called for By eth0r buyer or seller shal Dc
made according 10 provisions OF Article 20 OF bylaws
In case OF default the part OF any seller ior ac
count" to satisfy his contract with purchaser ~
O'Clock OF settling day. the purchaser shan proceed 70
have the stock bought IN according 10 pro'sons "
Article Is OF by laws; 1t being conditoned, nowesei
that the officer OF the Board shall close the AZ
difference OF 10 per sale price, without interest
calculation, unless Le can buy at or within mat unit
In of defanlt on the part OF any buyer lor ac
satisfy his contract with seller by O'CLOCK OF
settling day. the seller shalt proceed 70 nave tne s,ook
sold out according To Artoo Is OF bylaws IL oens Son
dinOned however. that the oihoer OF the boaru S,
close the contract difference or 10 per cent from
purchase price, without interest CALCULATION, unless ne
aell at within that limit.
Not, The object Of having the scooont commerce bree
closing old fanh s1cieu ume peno OF
speculative a for renewal contracts exchange tickets o'
Note The oSjsc. he limitation prevent sudden and
unnatural eucusons technically called corner or ne
change and ultimate results, generally as disastrous 70 those or
ssniIing them $ to their SicHmA
Thomas Denny jr, in calling the attention OF the
tho ENcb IN
The present method Of specializing in stocks cash
basis relying upon call loans as the means Oh carrying
them and the free Certfcaton or cheeks Oy rev OF
the banks the means OF exchanges, mas oeeh ioun
defec i've periods OF unusual excitement and the SAD
results OF the last few weeks make u manifest tnat tne
stock Exchange must adopt some new plan for specua
tive dealings. The adoption OF the plan OF Duys anu
selling for account" modelled IN part on the English
system applicable solely TO the speculative portion Oh
operations and not Interfering with existing MODES
Of doing business will be- the writer's opinion, OF
| great advantage 10 The settlement during
| three days OF the previous fifteen days' trans
actions sock-especlay IL the hnal settlements
are made through Clearing house-wi largely dlmn.
ish the risk forged certificates certncati0n OF
checks and transportation Of securities from place 10
place Settlements for account Instead OF for cash VIII
be of OF great advantage too in OF sudden and
development OF causes that give SHOCK
business community and produce panic, by CIV
contracts In regard the limitation of loss deal
ings for account" TO fixed for fixed period. IL
| il would largely Increase business, and the greater
| tho number OF transactions the better chance
| Of profit is there TO the members OF
the Exchange either operators or commission bro
kers The expensive experience Oxbtsned by many large
operators during the last few years by means OF cor
ners" or pancs brought by large fires or une&
pected failures have driven them almost entirely out oil
the market II limitation would be simply precautl0n
ary except extraordinary circumstances such as
the orthWestern corner. or Cncago or Boston n.e
| should be adopted guard upon our speculative
| transactions.