What Is The National Debt?

National or public debt means the same; the debt of a nation.

The National debt of the United States consists of bonds, United States notes, notes issued prior to the present United States notes, national banks' notes for the redemption of which, money has been deposited by the banks, fractional currency, gold certificates, silver certificates and Treasury notes.

What Is Meant By The Term Net?

Free of all charges or deductions such as actual profit or actual loss. The net earnings of a stock company are the earnings left after deducting all expenses.

How Do Net Earnings And Net Profits Differ?

These terms are frequently, but wrongly used synonymously. When all operating expenses are deducted from gross earnings the remainder is termed Net Earnings. In banking, however, losses frequently occur on loans, no matter how conservative a bank may be. Such losses deducted from the "net earnings" leave a balance which is called "net profits." Even in the National Bank Act, the term "net profits" is used referring to the profits before losses have been deducted.

What Is The New York Clearing House?

The official title of the organization under which the associated banks of New York conduct daily clearings.

It was organized in September 13, 1853, and clearings were begun on October nth. The association now owns and operates in its own building.

What Is The New York Stock Exchange?

The New York Stock Exchange is unincorporated. It is not a corporation, neither is it a partnership. It exists under a written constitution and by-laws. Neither the constitution of the New York Stock Exchange; nor the rules and regulations of the London Stock Exchange, state in specific terms the object of organization.

The New York Stock Exchange originated in an agreement dated May 17, 1792, by "Brokers for the Purchase and Sale of Public Stock."

By public stock was meant government securities or government bonds. At that time the brokers met and did business under a buttonwood tree that stood in front of the dividing line between the present Nos. 68 and 70 Wall Street. In 1817 a constitution was adopted under the name "New York Stock and Exchange Board." On January 29, 1863, the present name, "New York Stock Exchange," was adopted.

The membership of the New York Stock Exchange is limited to 1,100. The admission fee is $2,000, but this is in addition to the cost of membership itself, which depends on the "condition of the market," for seats, as memberships are termed. Nowadays a membership is obtained by buying the seat of a retiring, deceased or expelled member. A member is elected for life or until he resigns or is expelled.

Expulsion from the exchange forfeits membership, but not the proceeds of it. Temporary insolvency involves suspension. Permanent insolvency involves loss of membership, and the proceeds of the membership are applied to the payment of the claims of creditors who are members of the exchange. If there is a surplus, it goes to the member, or if he has been declared a bankrupt, to his assignee.