St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-09-15
DECLINE OF EXCHANGES.
Some of Those in Which Membership
Was Once Worth Hundreds of
Dollars Now Not Doing
Any Business.
New York World.

Any Business.
New York World
the depreciation in values which has been
so conspicuous at the stock-exchange during
the past two or three years has not, however
been confined to stocks alone The decline
has extended all along the line of speculative
commodities, and wheat, corn, oil, cotton.
coffee, sugar, and other articles have suffered
as well as those stocks the amount of whose
decline must be expressed by two and even
three figures. The volume of business is
generally less on falling than on rising
market, and the prolonged decline has been
followed by dull, tame, stagnant markets.
The complaint is that the public has been
frightened by the appalling decline in prices,
by the repeated exposures of financial dis
honor, and by the frequent lapscs of divid-
ends and interest The result has been that
the brokers on all the exchanges have been
suffering from hard times. Many of them
have had hard work in scroping together
enough business to keep themselves going.
And hence it is that there has been decline
in the value of exchange memberships in al
most the same ratio as the decline in the
prices of the commodities in which they deal.
The speculative fever which reached its
height in 1881 and 1882 caused the establish
ment of a number Of exchanges, many Of
which are now in the last stages of ''quick
consumption" Five or six years ago there
were but five exchanges in existence. They
| were the stock, the mining the produce, the
cotton, and the maritime. There are now
| about twenty, but unless there is sudden
improvement in general speculation this
number will soon be materially reduced. So
| numerous became the exchanges that broker
age in their membership certificates became
| a regular business. number of individuals
made the purchase and sale of membership
| their sole means of livelihood. Speculation
| in seats became at times very brisk. Certifi-
! Gates were ''bulled' and ''beared'' and sold
''long'' and ''short,' in the same manner as
stocks and grain. At one time irregular
''calls'' of certificates were established at the
produce-exchange and were better attended
than the grain ring.
But all this has changed. For reasons al
ready explained, the prices of membe rship
have greatly deprecated, and brokers in
that kind of property are complaining of
their hard luck. Seats in the stock exchange
! two years ago could not be purchased for
less than S32, 900 or 1913, 900. Now the
price is about S24, 900 or 1925, 900 and only a
a few months ago they sold as low as 500
600. The fact that the stock-exchange has
practically monopoly OF stock speculation,
it having no formidable competitor in this
country, and that the membership is limited
| to l, 100 makes the seats more valuable than
those ofany other exchange in the United
States. Seats in the Paris exchange, howev.
err, are worth 500, 900 each. Produce-ex-
change memberships sell now at about So
600. They have sold as high as 81, zoo. The
membership of this exchange is limited to
5000. Cotton exchange membership have
declined from S. 600 to S3,025. New York
mining stock and national petroleum ex.
change seats have sold as high as SO, 800.
but sell now at $500. The New York petro-
leum seats are selling at $3.50, q decline
from 800. The coffee exchange sell at
$500 decline from 81, 400. There are only
two coffee-eXchanges in the United States
the one here and the other at Baltimore.
Both were established about three years ago.
The Baltimore exchange has proved fail
ure and has practically disbanded. The
maratime exchange memberships have de-
clined from $3.50 to 500, though the organi-
cation is in fourishing condition. Mer-
camille exchange memberships have declined
from $400 to $500, metal exchange from
5000 to $3.50, naval stores and tobacco ex-
change from 1926 to $40, wine and spirit
exchange from $3.50 to $25, importers and
grocers' exchange from $1,000 to $3.50,
| Manhattan hay and produce exchange from
$3.50 to S35, brokers' real estate exchange
and auction room certificates are selling at
$500. The memberships in several ex-
changes are practically worthless. The real
estate and traders certificates which once
sold at $500 are now quoted at 81.
The electric and the building material ex-
changes are quoted nominally at S15 and the
| an1,o frn1 OF Nf
these organizations" said a broker, Satur-
day, ''are solid institutions. They meet
want, and have, no doubt. a long life of pros
perity before them. But some of the ex-
changes, and especially those of recent ORR
igin, seem TO have had little in them save
that of providing two or three sinecures for
the chief promoters and an opportunity to
speculate in the membership. The stock
produce and cotton exchanges occupy so ex-
allied positions in the business world, their
organizations are so perfect, and the disci-
pines so trict that membership in any
one of them gives man certain distnc-
ton in financial circles. Two or three eX
changes have apparently been organized
merely to trade on the reputation enjoyed
by the stock, produce, and cotton exchanges.
The memberships have been offered at low
prices, and individuals in and out of the
city have been induced to purchase because
they think it would be fine thing to be
member Of New York exchange. One of
these organizations is not making scarcely
the pretense of doing any business. The
few sparks Of real life that it ever had have
long since long since been eXtiuguished. 1t
now simply exists to provide salaries for three
or four persons. There is an auctoneer at
SIPS per month, who spends about five min
utcs every day in the exchange going through
the pretcnse Of ''call'' at which himself
and the doorkeeper are the chief attendants.
Then there is a superintendent of 800 a
month and vice president at 500 a month,
who would not be missed If theysswould en-
ter the exchange except on salary day.
Then there is a secretary, who receives 500
per month and comfortable Office rent free.
The members have about abandoned the lux
ury Of paying their annual dues, but there is
enough money in the treasury TO keep these
comfortable sinecures for about two years
longer.
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