Open on Saturdays

Since 1914 Saturday has been a full holiday to members of the London Stock Exchange. Last week, however, the Committee for General Purposes held a long meeting, gravely considered "the situation of the country" and "the desirability of affording facilities for dealing," decided that on and after Sept. 19 business should be transacted on Saturdays.

London dispatches said that older members were pleased by this return to the former routine, that younger members could not see for the life of them why long weekends had to be broken up. Observers thought that the chief reason for the move was not the financial crisis in London but that 'Change hates to see Saturday's business in the U.S. shares going to London branches of U.S. houses. Promptly the Birmingham and Newcastle markets followed London's lead.

The London Stock Exchange occupies a triangular area between Throgmorton Street, Bartholomew Lane and Old Broad Street. It is drabbish outside, domed above, spacious within. The Stock Exchange is a private corporation with some 2,700 shareholders, nearly all of whom are among the 4,000 members. The membership is divided between brokers proper, acting as agents on a commission basis, and jobbers who buy and sell, trade on their own account. One man cannot be both.

Accounts are settled fortnightly in London, in contrast to New York's daily clearance and settlement by 2:15 of the following day. Purchasers may buy a stock on the account's opening day, advance no money until settlement time. However, during this period they must pay an interest rate or "contango." Contango is in general based on prevailing rates, but stocks with a large bull account command a higher contango, very speculative shares cannot be contangoed at all. There is no contango when a large bear interest exists but bears must pay a premium known in London as "backwardation."

Although the New York Stock Exchange is now thought to lead the world in the volume of business done, there is no securities market with so great a range in issues as London's 'Change.

The London list includes some U.S. issues (most of the prime rails, also U.S. Steel), many Colonial shares and bonds, some stocks from almost every nation. British bonds are traded in directly in front of the World War Memorial. The best known of these bonds are of course Consols, or Consolidated Annuities. They were first issued in 1751 with interest paid at current rates, but successive reductions brought the rate to 2 3/4% in 1888, 2 1/2% in 1902. There is also a 4%, issue of Consols, sold in 1927. These bonds have no maturity date. A favorite section is "Home Rails," including, of course, Great Western, London, Midland & Scottish, Southern, and Metropolitan ("Mets"). Foreign rails include Antofagasta-Bolivia Railroad ("Fags"), Canadian Pacific, and Costa Rican. The bank division lists the British banks, also Chartered Bank of India, Bank of Hongkong, National Bank of Egypt and others. Imperial Chemical heads the chemical group while the textiles include Celanese, Coats and Courtaulds. Industrials include Vickers (steel), De Havilland Aircraft, Imperial Airways, Cunard, Dunlop, Kreuger & Toll, Unilever, Swedish Match, British-American Tobacco ("Bats") and Imperial Tobacco ("Imps"). Favorite of the land shares is Sudan Plantations, great Government-subsidized cotton farms. Guinness and Allsopp lead the breweries.

The rubbers, teas and mining shares help give 'Change its international flavor. A broker receiving an order in rubbers may have to rush out and buy some Bah Lias, Gula Kalump, or Linggi, while in teas he must know Budla Beta, Chargola, Jokai, Pabbojan. The mining list includes famed De Beers Diamond Mines, the Rand (gold), Johannesburg Consolidated Investments ("Johnnies"), Rio Tinto ("The Tinto"), Roan Antelope, Katanga, Mount Isa, Siamese Tin.

This year has been one of declining prices on 'Change as illustrated by the following representative table:

Jan. 1 Recent Prices Prices

Alliance Isurance. -L-20 3/4 19 1/8

Anglo-Persian Oil... 2 25/32 1 19/32

Brazilian Teaction. 21 5/8 18 9/16

British-America Tobaco...... 5 3/32 3 15/32

British-Celanese 7/8* 4/-*

De Beers............. 4 3/4 3 5/8

Hudson's Bay.... 1 1/4 20/-*

Imperial Chemical. 18/-* 11/9*

Loard's Bank A..... -L- 3/6 -L-2/ -

London, Midland & Schottish.......... 33 1/4 13 1/2

Midland Bank -L-1 3 19/9 3 7/6

Unilever........... 1 3/4 1 3/8

Vickers............ 7/-* 6/3*

* These quotations are in shillings and pence.

One pound (-L-)=20 shillings. One shilling (s)=; 12 pence (d).

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