The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1911-03-09
HISTORY OF THE NEW
YORK STOCK

ming. we'll Into the thousands. giving to
each employee q handsome bonus.
Despite the deafening uproar and appar-
stock exchange Is really conducted in an
orderly manner and according to strict
rules. The vast arena Is studded with Iron
posts bearing the names Of leading stocks.
such AZ Erie = Steel. ..Lackawanna,"
Pennsylvania IN. 7. Central" In
other places or corners some particular
security will be regularly dealt In. Trans
actions between buyer and seller are thus
invariably made In the particular GROVE"
and In the presence OF perhaps q hundred
other brokers dealing in the same stock.
The first bid or offer has priority until
superseded by a higher or lower q~uetation-
Individual brokers ave different modes
of making their bids known-hy an OUT
flung hand, by opening the fingers, or by
voice alone. These peculiarities become ~
we'll known as the mans features. Dis
putes seldom occur. Sometimes the brsk-
er trusts to his marvellous memery but
more often he scribbles q few caARlistio
characters on q pad, tears the leaf eli. and
filings 1t to. his firms clerk whe is hover
ing on the outskirts Of the "crewd." and
who promptly telephones tho buy" or
5"sen" to the head office.
Then, also, as each transaction IL con
cluded, the amounts and prices are Noted
by attendants OF the exchange who stand
by each crowd" They transmit them to
telegraph operators whose cages are dst-
ted around the room. These quotations
are at once put or h wires OF the au-
|thorized ticker companies" having the
privilege. n flashed into brokers offices.
banks, trust companies. and railroad Of
ices all over the country and the world
The results come out in the long and
snaky tapes in every interested quar-
ter 4. every city IN the land. Then the to-
tai of these daily dealings. with highest"
or lowest or bid and asked" are
finally printed In the evening and morn
ing papers following.
On May II. 1892, the stock exchange sig
nalized its Tooth anniversary by adopting a
system of MISUNDERSTANDING mutual
debts and credits between members in the
leading stocks traded in on the board
This system secures for stock exchanges
members the same economy Of time and
money that the bank clearing house does
for banks. Only a part of the most acJ
tive stocks are handled under this plan.
The balance of the buying and selling is
still conducted under the old method Of
actual deliveries. All stocks or bonds pur-
chased on the stock exchange, except in
the case of those subject to the clearing
plan, must be delivered and paid for by
purchasers before 2:15 p. M. of the sue
ceeding day. These deliveries ars usually
made by lads from IA to 16 years of age,
who are entrusted with millions in ne
gotiable securities or certified checks.
: Losses by carelessness or dishonesty sell
dom or never occur, and many of those
messenger boys ultimately graduate into
successful brokers or even Napoleens of
finance.
Trading in stocks has developed a pc
culiar jarsoD. An outsider apt to lose his
money is a lamb" and the deposit he
makes with his brokers as security for
his dealings is margin" Operators who
bulls" and are long on the market.
Those who sell stocks in anticipation OF
buying them back at a lower figure are
bears" and are Short of the market,
that is, they ave sold stocks for delivery
which at the time they did not own, and
have to "cover'' or buy them pack to COM
plete the transaction. A decline is known
as a slump When it Immediately fol-
lows an advance 1t is a reaction an ad-
vance coming on the heels of a decline be-
ing a rally" A declining market is
weak and its converse Strong while
undecided but active trading is ''feverish,' =
and a period when the public comes in and
buys stocks recRlessly causing prices to
advance rapidly, is a boom" Pools
are temporary associations OF spectators
or traders to boom or depress some partic-
ular stock. Unloading is dumping Sc.
~curities on the unwary at top prices
Wash sales,' which are prohibited by the
rules of the exchange, are really fictitious
transactions between different brokers for
the purpose of rigging" the market OF
creating an apparent but unreal activit
in some particular stock.