The semi-weekly miner. [volume] (Butte, Mont.) 1882-1886, 1882-02-22

broker tn lend it, If he can. The bOr-
rowing broker pays him for it the rVgu-
lar market price. The lender may call
for the stock ut any time on rendering
the market price; the borrower may de-
! mand his money ut any time Oh tender
ing the stock. ~ long As the borrower
holds the stock, he must. under the
rule. send daily tO the broker of whom
he has borrowed it, Il check for the i'm
creased price if the price Oi the stock
has risen: on the other hand. the lend
ing broker must send daily to the bOr-
rover check for the amount the price
of the stock may have fallen: Keeping
the balances good in this way is the
duty of the clerks and b0OkkeeperS III
the various offices. Prices are made up
for the day ut :. Ii p. ~. In actual praa-
ttce, however. this rule Of keeping the
balances gO<xl daily on all sticks i~
scarcely ever observed between well-e<-
tabIishctl houses. Only when the mar
ket has gone several PR cent. away
from the range Of prices ut which the
transaction was made is IL call made by
either party on the other.
The profit that broker may make by
lending stock lies in interest charges
again. suppose that Il stock il in great
lnrn extensively ''sold Short" then
those who borrow it are willing tn pay
something for the accommodation Oi
getting it. The lender "f the stock IT.
triEts from the borrower Il check fur it's
market price, and so long ~ this money
pledge remains in his hands l,r pays in
terest on II to the borrower Of the stock:
hut on such occasions the borrower may
say, In effect: LEND me |, ,,aND shares uf
Western Union, and YOU need pay me
no more than : per cent. interest for the
money Jay you for it, the open inter-
c:st rate now being per cent? Ii the
demand for the stock br very urgent, il
may lend ''flat"-that il, all charges lw-
ing at the expense Of the borrower and
on rare occasions Il commission in a,i.li-
ton may Ike pail. These are the l,v!i,S
of the broker who has stock to- lend. On
such Il transaction l,c would III. c!.arv-
ing his customer u per cent. on the
money he lent hin, to h,,y the I, I'm,
shares Of Western Union, while l,c wa>
paying only olrr cent. for the money
i'c borrowed himself, or might u" pas.
ing nothing at I'LL and gtttin: II small
commission besides.
In another way the broker may make
I; per cent. interest charge clear pr,fit
suppose he has two customers, one Of
whom (Aj is ''lnmg' 900 shares of
Western Union, the other Il, "-;,uyt''
the same amount. The broker has
bought the .'HW shares for \, and
charges him 4 per cent. OH the cost price
80 long as it Is carried; he il"s sold the
,(hD shares for !S, and gets the money
back; hut. instead 0f borrowing the
stock for delivery. he uses AS stock Tor
nNoaNA Tb,aao, a..
balance each other, and the pcr cent.
interest charged to 4 10 clear profit.
1t must W. remembered that. iu SELF
ing stock ''>il"rt." the thing sold has to-
lc delivered to the purchaser tic s...,r
a~ in amy other sale and purchase. The
delivery must To, made before ::I:i =. ~.
"f the f"li"win,: day unless ;l,c terms of
the saIc provide for Il different time.
The one difference is that when the bro
Ecr has sold the StnN We Lor,uH il ~:
some other broker VIII" l.:,s ll, ~;...k 10
Icn'I, giving his clec!; .ur the ,,,arkcl
price. and makes his delivery with il.
When the time comes that Ii.. i.r,!,cy
'r"Irrs his Shorts" H." buys The stock
III the open market nt"i returns " to .he
one nc has borrowed from. receiving his
n'""ey hack. The profit ur loss 10 ,I,.
difference between ;!,r ;,ri,.. !l... ~iori,
w;'> sold ~ ai"' the p.i't. ri "i,ir;, !.r
"tDv"ru.' q: course. :, ",,.i,.,,.r has
u" interest I" pay hi. broker ON -
"sn"rt sale iun!e>> the Stock could u,.
~ have been t"r;Uw,iat :! ,.ni,,l.,.>>iur
Il, the broker gels III, interest paid I,v ;Ar
lender Of til" stock. with whom u.
pledged til" market price. of il. Thrr
are data Tor computing: ii,r am!:,.:.a,c
al!'"'nt annually paid h.,' ,,- -:,,,"rs t..
the h."'st;> g.: i'r -'",.l Exc!,:i:::c e.:
interest: : l:! Ike sun, t";". paid y..,riy
rs su',,'i*-i'.:'> ;.av l.. :.,;,,r, yi.:,:L..!y
estimated ~ :.," n;.',,'"ru; -,..k~ and
lH:i's ''"u4;.i :':.i sold. Tine :,no,l,,,
!. simply cin:Iu"i~. ..- u: ,ai,r
tli' TRANSACTION g., :: ,;,s"!r .!.y
only. a M":' I;;i" ,|:.:'.. ..,,-i.,~~
WI! :" .Nh'.'"h' >iI:;rt- - ~
h"t'i!''" of bonds. kH:".s ~. :.x.:tiAf.i,
."1.;N"' ~!iar''> as r.,."s-:il;i,,. i;. iil.,i..
.: h"'!;cr:' operating "ri ii~ir nyi, :.,-
rW!ht~-ih:' room ,ra't - a. nav are
called. We !:.:vr :i,r,u., ~::..r,,. i; -.
h',ight an: odd rl ...i:,...:--...i:. ;i,..
par va!':" j. $50 h"H, G.,-.'..:.; n!
PEI cent. ': ,!:: -;:in l. 81. 80. rv,r
S:''.-.tr' paid a. l:r i.'rs, .,r,i'>r.': q. t.l.
Si''S i..ir;:a:';,r f"::":..::l, .i.,.,* ,,. on,
''Ay'> :rsi,<;.r:ir.l> il, ,,il: :, :,!r!,. alt!
= yer, mod, rate day.: ..f,~.I..... - TIA,
will gil: s"H> idea r.-t,....,....';,,t l,,.!
III thr yca:. a:.-ls.r"if'.t.",
Marriage is !n.,.,: homo =. III .,.,i
al all "xps'i;cn' OF .,"-si.!-. :. ~r"i ~
Grn"', more -..t:.,i":lI ;.i,-cry'Hti,r
places 4 i.i:ch.: va:.ir on tint, ami ,n-
sii;oH. AMI wealth, !:,%il:':. ;.lt.! rul,l!r...
this uiii"i' - not rn., i'A,. iriu ,n!,3ut
d:iir"::.; n ami scrutiny. l.i.,il, orcr
::''''i I" ~ blind = n. lrn.r"r -. Mar
r::'' te i deferred! Till atrr y'.nr-nn! is d.
nin!s's! III Frequency. In car owl
cnuntry t:,c class ui sin :" Nu:,;'ii, g.:
women compelled 1" E:!,! .l.. .ynM'n SUI,
siS.ca" and MANA. their 'wa .ii:,.r~.
largely increases !i"m year i, Year.
Now, clrarl: there j., -",s.r,i.in,s wr"n..
III Il social system whir.! t'".l!lnlis in,
partial men TO say, l.ia, :;'l = missed in
4 fortune, or that til: c!.1n."., -: an non
Orahlc Evtli!,Md a:. :tW and exceptions
Ill, to amy woman Whose litr GOES 10,
ultimate III l!arriS4r.