Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1889-08-06
A BIG BROKER TALKS
Method of Trading on the New York
Consolidated Exchange.
EFFECTS OF A LIBERAL POLICY,
The Adoption of Which in Pittsburg Would
Make Business Lively.
HOW THEY MANAGE THINGS IN LONDON

Mr.. JohnIR.: Mckee, Jr.. who has just been
elected President of the Pittsburg Exchange.
needs no introduction to the business men of
this city, and especially to that large and infiu-
entail class known as brokers and investors.
He is one of the brainiest members of the
institution of which he is now the head, is
thoroughly conversant with the methods in
vogue in all the speculative markets. and is
active and enterprising to degree rarely COM
bined in the same individual.
Knowing that Mr. Mckee had just returned
from New York-the Mecca Of every business
man In America-where he had been II study
the workings of the metropolitan exchanges
for the benefit of the home institution, 1
sought and obtained an interview yith him
yesterday. He expressed himself as borough
ly pleased-delighted, as he put it1with the
methods of the younger Of the two gfsat specu-
lative centers of the big city-the Consolidated
Exchange-the members of whien, for the
most part are active, energetic young men
who have graduated from the old9 institution.
which they deserted solely for thf reason that
its plan of procedure, in their dpinion. is too
excusive-too anriquated and cumbersome to
meet the necessities of this progressive age.
They were not satisfied to workunder policy
which favors the rich and Ignores the middle
classes-that gives peculiar advantages to the
man who deals in blocks of thousands and
handicaps or ignores him whit is forced to re-
strict his operations to hundIeds-and identi-
fed themselves with o concein founded upon
the broad principle of equal tights to all and
exclusive privileges to noDe. In substance.
Mr.. Mckee said:
The Consolidated Exchange Of New York
started with the direct OPPOSITION of the old
GfnnLr Tr haA vuarv "a w of % a IN.
road and other securities which are usually
dealt in, and, as a consequence, members at
first had limited facilities Or executing orders.
To remedy this DISADVANTAGE, q new method of
trading was adopted. by which the actual de-
livery of certificates took place every Monday
instead of daily, as in the Did exchange. This
enlarged the field of operations, as it gave
week of open, or free. trading without the
necessity OF delivery, affording investors rea-
sonable time in which Il operate for turn.
When delivery day arrived traders as a gen.
eral thing, are perfectly satisfied to let the
brokers carry their deals another week in the
same manner, and the brokers' are willing to
accommodate each other by mutual loans to
tide over real or possible difficulties. This
gives a liveliness and activity to business
which is always wanting where stiff, narrow
and unaccommodating policy is pursued.
Now for the application. In New York
new institution, established in the face of
strong opposition and with many predictions
of ultimate failure, is hourishing like green
bay tree, and gives promise of soon rivaling, IN
the volume of business transacted, the old
Stock Exchange, which has resorted, and is
resorting to every possible device to crush its
young and vigorous rival.
Bringing the matter home. tho Pittsburg Ex-
change has large opertunities, under a similar
broad and liberal policy to increase its volume
of trade and influence almost indefinitely, for
we have a speculating and investing element il
our population second in size, wealth and in
telligence to that of no other city of equal
numbers in the Union. Moreover. our in
vestors are not hampered by want of capital to
operate with. for money Is, and likely will be
for long time. abundant and cheap. To this
1t may be added that the character of the
home securities is far superior to most Of those
dealt in elsewhere. ~ 81
In Boston, Philadelphla and Baltimore the
same system has bcen adopted as prevails in
the New York Consolidated Exchange, and
the result is admitted on all hands to be bene-
fetal, alike to brokers and investors
The system upon which business is carried on
in London differs as much from New York as
New York differs from Pittsburg. Settlement
occupies three days. One is called name day
that is, with regard to stocks which have been
purchased outright and which have to be trans
ferred, the name of the buyer is handed to the
seller. Another day is termed carrying-over
day, on which rates of continuation are de-
cided. The explanation of this is that person
having bought. say, 1000 shares OF any stock
and not being prepared to take up and pay for
it, desires it to be carried forward to the next
settling day. arranges through his broker to pay
what is technically called a .'contango." This
contango may be 4. 6 or cents a share; and
it takes the place of the interest which the
New Yoik broker charges. In London,
brokers art not, as in New York, tied down to
hard ami fast line with reference to COM
missions. They are competitive, and make
terms to stlt the case in hand. For specula-
tive transactions they exact only one commits
sion for both buying and selling and the pur-
chaser of 20 " so shares of stock gets as close
quotation as be man who buys and sells 900
or 10000 shara.
London brokers do all in their power to con-
vince clients that the wolf and lamb theory is
not much mordserious than standing joke.