The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1899-10-16

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The sales ticket is kept for reference
and as a receipt. The clearing house
ticket is detached, and at the end of the
! day sent to the stock exchange clearing
! house as veri1cation of the entry of the
| transaction on the firms clearing house
sheet Sly also sends the ticket re-
ceived from Sharp e. Quick to the clear
| ing house as verification of his entry.
STOCKS ARE SELDOM PAID FOR.
Now as to how payment for this st.
Paul stock is made. Occupying the new
street half of the ground floor of the
big building at No a. Broadway is the
clearing house of the New York stock
exchange. The establishment of this
clearing house is the greatest boon Wall
street has known in recent years. In
the old days deliveries of stocks and pay
ments were made direct.
The streets of the stock exchange dis
trict swarmed with boys bearing Sock
certificates and checks, and cashiers
windows were besieged with urchins
bowling for a chance to deliver their
stocks and receive their money. Many
certificates and checks were lost. The
clearing house has done away with all
this Now transactions are balanced
Stocks are paid for by not being paid
fora paradox, and a convenient one.
At exactly fifteen minutes after two on
the afternoon of every business Gay, ex-
cept Saturday, Wall street tickers pro-
claim ''Hammond's time"-Hammond be-
ing a clock maker and the official stock
exchange timekeeper. Fifteen minutes
after two o'clock marks the end of the
clearing house day. Any transactions
made after that time or any for which
the proper tickets have not been deliv-
cred by them, have to go over to the
next day to be settled. Just as the
tickers stop ticking "Hammonds time.
there goes up III every stock brokers'
office the shout, Times up" and imme-
diately cashiers windows are closed and
cashiers clerks begin balancing their
clearing house sheets.
In Sharps office on this particular day
the clerk adds Lambs St Paul transac-
ton in with the other purchases made
by the firm during the day and finds, let
us suppose that there has been pur-
chased stocks of the total value of $500
COO. Then he adds up the values of the
stocks whic> the firm has sod during tn
day and finds that they aggregate less
$350G00. Therefore the firm owes The
clearing house $50, 600. And their sh sct,
when it is sent to the clearing house,
must be-accompanied by certified
check for that amount. If their sales
had amounted to $780, 900 the clearing
house would have owed them $4,000 and
would nave lnQOrSeu their draft Tor 1t
on the following morning That is how
stock brokers pay and get paid for what
they sell and buy. In this case transac-
tiCns in securities worth $750,G0) require
only $50, 900 cash.
BORROWING FUNDS.
and even this $4,000 is likely to be
more than the broker has to lay out, par
tlcularly if he be a member of small
house" such as Sharp & Quick But he
has two methods of getting the money
The simplest is to get a loan of the
amount, as collateral for which he can
use the stocks which he has bought for
Lamb and other customers Eie may ar
range for this loan By calling on his
tanker or he may get it on the floor OF
Tie stock exchange, where the banks
have representatives constantly Offering
funds. And this loan my be either
call loan time loan" If it Is The
former the bank can cali it in or the
borrower can cancel 1t when either de-
SiIcs. 1t is the interest rate for this
class of loans tfTat fluctuates SO much.
and that is meant when you read that
money is 2 per cent or that money is
20 per cent" The time loan is one
made at a certain rate for a specified
tune usually from sixty days to six
months. The rate on these is more sta
Bile, and in times of tight money is usual
~ lower than call loans.
For a loan of either class collateral is
required by the banks that is worth in
than the obligation. In the case of Sharp,