The New York herald., 1922-06-15
EXCHANGE QUERIES
FORCING COMBINES
Weak Brokerage Firms That
Cannot Stand Tests Are
Seeking to Merge.

The hrst result OF the distribution
among membrs of the New York Stock
Exchange of the QUESTIONABLE that they
will be compelled to answer from time
to time. setting forth their financial
position, &C.. has been to cause some
of the weaker houses to seek stronger
ones with which to consolidate.
Many firms with small capital in the
present bull market have been doing a
business that made their loans far out
of line with their capital While their
capital has not been impaired. they
realize that the authorities of the ex-
change will not countenance the stua-
ton and will compel them to reduce
their loans TO square with their capital
To do so, in most cases, would result in
the transaction of such a small business
as to make it not worth while.
The QUESTIONABLE goes deeply into all
angles of the brokerage business. l.
demands details of capital. loans
debit balances stocks in the box, part
ners' accounts and innumerable small
details. 1t first seeks total bank bai-
ances of brokers, contributions TO the
clearing fund, deposits with trust COM
&c. Other questions are:
Total Money Borrowed.
Enter separately accounts carried for
your firm by other banking or broker
age houses. showing debit and credit
money balances and value of securities
both long and short. State ledger bal
ances in the following accounts-Stock
borrowed. stock loaned, failed to de-
liver. failed to receive.
Market Value of Negotiable Securities
in Box and Transfer Books-Classify
as follows-Listed on New York Stock
Exchange, market value over S. a
share, market value under So a share
not listed on New York Stock Exchange
market value over s5 share, market
value under s5 a share. Note-Do not
include the value of any securities in
safe keeping nor the value of any Sc
curities carried as long if paid for IN
full by customers.
Customers' Accounts.
All personal accounts other than men,
bers of the firm: (a) total ledger debit
balances in customers accounts; clas-
sify as follows: G) Secured Estate
value of securities). CD partly secured
Estate value of securities). CD unse-
cured (b) total ledger credit balances
in customers accounts. Classify as
follows: Cd Against market value OF
short sales Of securities Estate value OF
these short securities): CD customers
credits as margin on open contracts IN
grain, cotton and other commodities
Estate equity and deficit with these con-
tracts figured at the market price) (3)
free credit balances. Note--Do not IN
clude in answers the value of any Sc
curities in "safe keeping nor the value
of any securities carried as long II
paid for in full by customers.
Partners' Accounts.
Total debit balances and total credit
balances, also total value of long Sc
curities and total value Of short securi-
ties in the following accounts: (a)
Partners individual accounts, (b) firm
investments and trading accounts; (c)
capital accounts. Enter separately the
amount at which Stock Exchange seats
Office furniture and other fixed assets
are carried on the books. Give general
description of underwritings and syndi-
cate participation accounts.
Profit and Loss Accounts.
Surplus and undivided profits. in
cIudinr balances in income and expense
accounts commission, interest, ex-
penses, &C.. which will eventually be
closed by journalizing to profit and
loss account. (Note) e)-The question may
be answered by giving one amount
specifying debit or credit.
other Accounts.
State details Uedger balances and
value of securities) of any and all ac-
counts which have not been included in
one of the answers to the above ques-
tions. These accounts will include rev.
enue stamp account, dividend ac-
count, &c.
General Instructions.
Do not prepare answers to above
questions until you are requested to dc