The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1888-09-06
ARBITRAGE BROKERAGE.
One Of the Ways by Which sharp Ne,
York Operators Coin Wealth.

One OF the ways ny Which sharp New
York Operators Coin Wealth.
"A half for hundred. A half for
hundred! Sold" A quick affirma-
tive nod, and the buyer instantly sig
nails to telegraph operator Sitting in
one OF the enclosed spaces on the floor
Of the Stock Exchange. A few clicks
Of the instrument and the brokers'
partner in Chicago knows that the
New York branch of the house has
purchased one hundred shares of
Reading. st. Paul, Lake Shore or one
of the many stocks dealt in, at cer-
tain figure, on which he must realize
to an advantage. All this is done in
less than one minute, and yet it is a
transaction involving many hundreds
of dollars. A repetition of this may
be seen every day at the Stock Ex-
change, and it is technically known as
"arbitrage broking." Arbitrage bro
kers are those who make business OF
buying in one market and selling in
another, always at an advantage, how
ever, unless the tickle goddess is sukey
and unwilling to be appeased. To be
u successful operator in that line of
financial transactions, the broker must
be quick of ear, swift of eye, ready of
perception, and lightning itself in
movements. The main idea is to beat
the market, and even time itself is dis
tanced in these transactions. which
seldom cover more than fifty seconds
in completion. To buy at low quo
tation in one market, telegraph the
transaction by special wire 10 the
partner in another. and have him sell
nj tn. ruling figure there before the
two markets can adjust themselves. Is
regular calling among brokers in
the "strect,' and fortunes are daily
lost and won BY these movements
which make Old Time hide his head
with shame.
One Of the best-known stock jobbing
firms in this city is devoted to this sys-
tenn, and their arrangements for speed
and safety are down to a mathematical
precision. Private wires, either
owned or leased, connect the principal
exchanges, and private operators, who
know the market as thoroughly as do
the brokers themselves, handle the
keys. On the table in front of the
ticker are small piles of paper slips,
three by four inches, and differently
colored. Each tint represents differ
ent stock, and the price in cabalistic
signs is marked on the appropriate
slip, thus obviating the writing of
message, however short. As quickly
as a sale or purchase is completed the
fact is wired to the receiving operator,
who marks the sign on the slip, which
is rapidly.taken by a messenger to the
other broker. A glance, the trans
action is completed, and the crumbled
slipfalls to the floor unintelligible to
the other broker, and is tossed about
unappreciated. though it may have
been the messenger OF fortunes.
These messages are being constantly
sent to and fro, as many astwenty being
received and dispatched in one minute,
and near the closing of the sessions the
floor Of the Stock Exchange is parti-
colored with these tinted slips. But
these dealings are not confined to any
two exchanges. The Bourse, in Paris:
Exchange Place, in London; the Wen
ma and Berlin Bourses, as Well as the
Stock Exchanges at Philadelphia, Bos-
ton, Baltimore and Chicago are in
Geographic communication with the
New York exchanges, and many of the
members Of the last have either branch
houses or correspondents in one or
more OF the former places. To be able
TO realize to what extent this branch
plays in the daily business of an ex-
change, it may be stated that more
than five hundred wires run into the
New York Exchange, most of which do
service to arbitrage brokers.
One firm in this city transacts con-
siderable foreign arbitrage broking.
AS the London market closes about the
opening hour for exchanges on this con-
tinent, to be able to know the strength
of it and play successfully here is a
financial advantage of considerable ef-
feet. This branch of the brokerage
business is used by some firms to coun-
teract exchange and prevent tho loss
entailed by redeeming foreign coin at a
higher figure than Is commercially H.
lowed. Chicago Journal