THE GRIP OF THE PIT 199 



The machinery for handling the huge volume of 

 business transactions in a grain exchange must be com- 

 plete and smooth running to the last detail, so designed 

 that every contingency which may arise will be under 

 control. For simplicity and efficiency in this connec- 

 tion the Winnipeg Grain Exchange occupies a unique 

 position among the great exchanges of the American 

 continent; in fact, it is a matter for wonder that its 

 methods have not been copied elsewhere. 



The Winnipeg Grain and Produce Exchange Clearing 

 Association is a separate organization within the 

 Exchange and to it belong all the Exchange members 

 who deal largely in futures. Each day the market 

 closes at 1.15 p.m. By two o'clock every firm trading 

 on the floor must hand in a report sheet, showing every 

 deal made that day by the firm the quantity of wheat 

 bought or sold, the firm with whom the trade was 

 made, the price, etc. If on totalling the day's transac- 

 tions it is found that they entail a loss, the firm must 

 hand over a cheque to the Clearing House to cover the 

 loss; if a gain in price is totalled the Clearing House 

 will issue a cheque for it to the firm so gaining. Thus, 

 if Jones & Brown have bought wheat at $1.39 and the 

 market closes at $1.35 they lose four cents per bushel 

 on their purchase and must settle the difference with 

 the Clearing House. All differences between buyers 

 and sellers must be settled each day and if the volume 

 of trades has been heavy, the Clearing House staff work 

 on their books all night, if necessary until every- 

 thing has been cleared for next day's business. The 

 firm which loses to-day may gain by to-morrow's trades, 

 maintaining good average business health. Any private 

 trading which may take place after official trading 

 hours is known as " curb " trading. 



