The herald. [microfilm reel] (Los Angeles [Calif.]) 1893-1900, 1895-10-09
LET US HAVE AN EXCHANGE

With all its progressiveness and Its as
sumption of metropolitan airs, thers are
some things essential to live business
metropolis that Los Angeles lacks and
has lacked too long. One of them the
Herald adverted to.at length some time
since, and that is place where the evil
dences of incorporated capital may be
listed, quoted, bought and sold, stock
and bond exchange.
This is an era of corporations. The in
creased and increasing demands of hu-
mainly has made necessary the carrying
on OF enterprises intended to satisfy
thoss demands on a scale far bsyond the
financial measure Of the single individ-
ual. Hence many men of means and
credit join together for the purposes of
development production, man ufacture
and distribution. They pool their cap
ital and credit in the form of the corpor-
alton and their individual interests in
the latter arc represented by issues of
stock, while the Indebtedness OF the cor
poration that has gone beyond its own
cash resources Is frequently represented
by bonds of some Sort
The corporation idea has been instru-
mental in calling into fields of ussful ac-
tivity immense quantities of capital that
would have remained idle and unproduc-
tive.
But the success of the corporation as a
factor in the world of trade and produce
ton is largely dependent on the ease and
economy with which its stocks and bonds
may be introdu ced to the investing ele-
ment. The degree in which its issues are
available in selling sense often marks
the degree of its achievement in its cho-
sen field.
1t is as a medium of introduction and
register of market valde that the stock
and bond exchange plays its part and
becomes in time in every real active busl-
ness community second only in import
ance to the corporations mselves.
Los Angeles as focusing point for a
large part of the wealth of larger or older
communities and the natural capital OF
vast region ricn in resources, has beco me
the birth of hundreds of corporations in
the last few years. OF course q multitude
of them are "born:to blush unseen" and
will never. earn as much as tie cost of
getting an existence. On the other hand,
however. many are intima tely connected
with or responsible for the great enter
prises that have had to do with the
building up OF Southern California and
everything or anything that will directly
or indirectly facilitate their progress by
making easy the dIsr o,al OF their stocks
and bonds will promote the general well
fare of the whole southern section.
There are dozens of corporations whose
stocks and bonds are as sound and safe
as investments as any to be found in the
west, and yet the popular ignorance e.
garding the real value of the securities is
such that the holder of some of them
would find them practically worthless
for purposes of immediate or speedy re-
alizatlon. The very fear of the unavail-
ability of corporation paper has kept
large sums of capital out of iuch invest
ments and thus indirectly retarded devel.
opment and production. The reputa Bile
resident corporations of Southern Califor-
mia can Ill afford to longer neglect the
establishment of an institution which
life, standing and character to their now
comparatively nnknown, and too often
discredited, stock and bond issues.