The Birmingham age-herald., 1904-12-06
LITTLE TRADING IN
 IRON CERTIFICATES
PIG IRON WARRANTS EXPLAINED IN VIEW OF INTEREST IN THE TRADING ON NEW YORK PRO. DUcE EXCHANGE.

Pig iron warrant certificates were listed on the New York stock exchange several weeks ago, but up to this time there has been little trading in them. AS the matter of the warrant system be- comes better understood trading. 1t ia is thought, will become active.
 Birmingham brokers are preparing to handle the iron certificates business.
 The following article is from the Wall Street Journal:
 An inquirer asks what are the spe- cial features and the methods of the new market for trading in pig iron war rant certificates upon the produce ex- change.
 About one-third of the pig Iron pro sale, the other two-thirds being handled in subsequent process of manufacture before coming to the market. Prior to 1899 each producer accumulated and car ried his own stock of pig Iron stored in his own yards. In 1889 there was started a system of warrant yards, which were for the purpose of receiving and stor- ing pig iron in the custody of the ware houseman and issuing against such pig iron warehouse receipts, which in this case were called pig iron warrants. These warrants described the grade and loca- ton and became excellent collateral for iron masters in securing money. They developed more or less circulation and were very highly thought of, but they were for specific grades of iron in spe- cifc localities, and they served rather as a basis for financing the necessities of the iron master than for a method of selling iron. A public market on an extended scale can only be conducted in a commodity which can be reduced to few definite grades of wide range of demand. This limitation has been a specific bar to the public sale on any extended sale of pig iron warrants in this country. There has been a pig iron warrant market in Pittsburg which has been ins operation for some months.
 'In devisIng methods and rules of the pig iron warrant market in New York certain new features were introduced. The effort has been to reduce the great variety of grades of pig iron in the va rious localities to @ single grade and single delivery, and then to connect all grades and deliveries with the standard grade and standard delivery by a sched- ulc of differentials. Some sixteen grades and sixteen deliveries were provided for in this way upon the basis of New York harbor delivery of No. foundry, In order to make effective this differential and protect the purchaser, there was introduced an extra link in the chain by the use of the warrant certificate This certificate serves two purposes-it Is on the one hand a guarantee that the differential has been deposited which brings the special grade and delivery of the actual pig Iron warrant presented up to standard grade; on the other hand, 1t secures a general listing of all grades and all deliveries offering in the market, thus producing the widest possible mar ket for special brands and giving all brands a trading value regardless of the specific demand for specific brands.
 By this means a new step has been made, intended to put the New York pig iron warrant certificate market ahead of any of the regular pig iron warrant markets. If at any time the schedule of differentials does not register the aver age relation between the several grades and deliveries and the standard grade and delivery, tho committee of the pro- duce exchange will rectify the schedule There remains of course the competition of special grades and deliveries which may disturb the relation between the differential and the actual difference of value from that of the passing grade. This is a comparatively small proportion of the total risk of the market"
 ---~-~-~~~~~~~~~-~~~-~~ ask for city Improvements and extensions in all departments, but not so easy to find the wherewithall to meet these de- mands.
 "Taxation is delicate question. Every body wants his tax burden and more pub lie improvement, and even the insurance companies in making this series of de-