388 STOCK EXCHANGE rind the operations of the street. The first are legitimate, and the sales are presumed to be lonafide; the second are generally specula- tive, and are often mere gambling or betting by men without capital. The board of brokers in New York is composed of more than 1,000 regular members, who at their two daily ses- sions, either on their own account or as bro- kers for others, purchase or sell the various stocks which are called in order. The presi- dent, secretary, treasurer, and governing com- mittee of 40 members are the executive of the exchange, and can admit, suspend, expel, and readmit members. Next in importance is the sub-committee of arbitration, which decides all disputes arising from transactions between members. When a member fails to deliver or pay for stocks as agreed, his name is struck from the list ; but he may be reinstated upon effecting a settlement with his creditors. The New York stock exchange is the wealthiest organization of the kind in the world. The par value of annual sales made at the boards and " over the counter " is estimated at more than $22,000,000,000 ; but this enormous sum covers all sorts of speculative transactions, including those where no actual transfer of stocks occurs, and "differences" only are paid or adjusted, these operations forming in fact the bulk of the business in Wall street. The rules of the exchange are very strict, and cover a rigid scrutiny of all securities, a systema- tization of the brokerage business of member with member, a surveillance over members in respect of their fidelity to contracts, and a stringent examination of the character and responsibility of candidates for membership. An applicant for membership must be 21 years old, a banker, broker, or stock dealer in New York for one year, or a clerk to a mem- ber for two years, or a member in good stand- ing of the Philadelphia, Baltimore, or Boston board. The initiation fee of a member ad- mitted by election has recently been fixed at $10,000, and of one admitted by transfer at $500. During business hours the board is in constant communication with the financial cen- tres of Europe, and the brokers pay $1,000,000 a year for telegrams from London alone. The stock exchange has its own peculiar terms, not generally understood by outsiders. Among those in most frequent use are "long" and " short," expressing individual excess or de- ficiency in the holding of a specified stock for speculative purposes ; and "bull" and "bear," designating those respectively who find their interest in operating for a rise or fall in the price of stocks, or who, foreseeing either a rise or fall, take measures to protect themselves or make a profit on the " turn of the market." The bull endeavors to appreciate or " toss up," and the bear to depreciate or " pull down " the price. The phrase "buyer's option," added to the memorandum of a sale of stocks, im- plies that the purchaser who buys at 30 or 60 days can call for the delivery of the stocks at any time within the period by giving one day's notice and paying interest at 6 per cent, up to the time he calls. Such purchases are usually made at a little above the cash price. "Seller's option" is a little below the cash price, and the seller has the right to deliver on any day within the limited time, by giving one day's notice, receiving interest up to the time of delivery. A "corner" is an operation by one or several brokers, who form a clique to compel others to pay a heavy difference on the price of stock. Sometimes the clique purchase gradually a large amount of stock on time, buyer's option ; they next sell nearly the same amount on time, seller's option, so as to secure an eventual market for their stock ; then buy for cash, thus raising the price, and make a sudden call for the stock they have purchased on buyer's option, which, if they have calcu- lated correctly, compels the parties from whom they have purchased to buy of them at a high price in order to deliver at a low one. "A point," the first element of successful specu- lation, is trustworthy private information con- cerning a certain stock, such as whether a bull movement is organizing, or an extra dividend is to be declared, or new stock is to be issued, or any other cause is likely to affect the price. A "lame duck" is a broker who is unable to respond with the shares or money when con- tracts mature. A " spread eagle" is the oper- ation of a broker who sells a large quantity of stock on time, say 60 days, buyer's option, and buys the same quantity at a lower price, on the same time, seller's option. If both contracts run their full time, he makes his dif- ference ; but if the buyer or seller calls for a settlement before the time, he may be serious- ly embarrassed. The "street" or the "curb- stone brokers" are not governed by as strict rules, and their operations are mostly specu- lative. "Put," "call," "ballooning," "sad- dling," " unloading," and more than 40 other terms make up the dialect of the exchange. In the Paris bourse there are 60 agents de change, appointed by the government. Each must deposit 125,000 fr. in the national trea- sury as a guaranty of upright conduct, and also 100,000 fr. with the syndicate of the bourse as a cautionary fund applicable to losses sus- tained by the customer through the broker's fault. A broker's seat is worth from 1,500,- 000 to 2,000,000 fr., and cannot be sold without the consent of the governing committee. There are 60 courtiers de commerce and 8 courtiers d> assurance, who transact much of their busi- ness at the bourse. The haussiers and oaissiers correspond to the American bulls and bears, and the coulisse to street or curbstone opera- tors. Cash sales are infrequent, and the greater part of the business is " privilege," technically mar die a prime, the buyer deciding on the 15th and 30th of the month whether he will take the stock or not, but in either case having to pay the premium. The time transactions are usually " the end of the current month,"
