Evening capital. (Annapolis, Md.) 1884-1910, 1907-02-27

IT IS a long trip from Wall Street
TO Lombard Street, but often an or
der TO buy or sell stocks given In
New York is executed In London in
little over two minutes. Recently the
markets have been brought closer to-
gether and dealings by New York In
the London market and London in
the New York market have become
heavier than ever before, says the
New York Sun.
The difference in time between
London annd New York. formerly
considered an impeachment to trans
atlantnic transactions, has now come
to be regarded as distinct adyan-
tage. The London market opens at
lila NJ, London time. which IS A.
M. here, and closes at 4 p. NJ, Lon
don time, equivalent to IL A. n.
New York. Thus there IS only one
hour daily during which the ex-
changes are both open, and on ac-
count of the time consumed in trans
hitting orders less than an hour for
transaction of the arbitage business,
which depends on variations in prices
In the two markets. Formerly such
arbitage transactions constituted the
principal business, except in the cases
of the most experienced operators.
Now the arbitrage trading for frac-
lions of points is small in compari-
son with the other business.
For instance, the New York ira
der has found 1t of advantage to place
orders after the New York closing. to
be executed in the London market
the following morning. In times OF
activity large buying and selling or
ders go across every night. II the
trader learns, for example, after the
closing of the New York market Of
an important development affecting
& particular issue, it is to his inter-
est to take advantage of his knowl-
edge at the earliest possible mo-
ment II he waits for New York to
open the knowledge may have be-
come widely disseminated. BY deal
ing in London he gets in as early, at
least, as any one else.
This advantage is enhanced from
the fact that the London curb market
differs from ours. In London the
curb market is open before and after
Stock Exchange hours, and it deals
In listed stocks, while I'm New York
the curb hours are the same as those
OF the Stock Exchange and only un-
listed securities are dealt in. Con-
sequently in ordinary times one may
begin dealing on the London curb at
A. NJ, and If need be, for various
reasons advantageous, to confine his
dealings to the London market. con
tinue until 8 o'clock in the evening,
London time, the hour of closing.
In times OF great market activity
arrangements are frequently made
by the Wall Street house with Lon
don connections for early openings or
a late closing of the London curb.
The difference in time, which af-
fords practically an all night and all
day Stock Exchange. is also a great
! help to pool operations. II is posi-
| Bile to buy stocks in London for the
purpose of stimulating the New
York market, and buy IN New York
for the purpose of stimulating the
New York market.
Brokers and experienced opera
tors abroad for a vacation, spend
more and more of their time In Lon
/ don and combine business with pleas
ure. Some Of them, on their return,
say that they get as far as London
and stay there. engaging in business
daily and making more money than
If they had remained In their New
| York offices.
| In London also stocks are bought
and sold for the fortnightly settle
ment, and stocks bought and sold be-
tween settlements are free of inter
est. With high money rates in this
| city very often the saving in interest
| is more than sufficient to pay the ex
pense of cables and other charges
and leave o comfortable sum beside
| On occasion, also. stocks may be car.
ried over the London settlement
much more cheaply than 1t is posi-
Bile to carry stocks in this city.
Houses which have developed
transatlantic business have excellen
cable arrangements with London
so that the interchange of bust
ness is very rapid. In these houses
orders are cabled, executed in Lon
don, and replies. received in from
| Ax-o IN tan minutes
The London market also offers thu
American operator speculation II
options, a business which has beer
! almost entirely abandoned on thi
| side of the water In London thes
options, the call. the put and tn
straddle, which is combination 0
a call and put. are still very popu
lar, and they are purchased exten
| tensively by American traders bot
FOR nrofif and for protection agafns