The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1902-02-19

A 'sStanding- Roorn-Only' Privilege to
iI'rade.
Philadelphia Times.


be valued at $780, is not to be cx-
planned by the fact that the number
Of these seats to be owned is infcxibly
limited to 1,100. In fact, it is not a
scat" at all that this $50, 900 buys,
but the opportunity. to stand for five
hours CT every business day and trade,
with such of the ,O99 members as may
be about, in those elusive commodi-
ties known as stocks, bonds, bullion
and loans. And the reason why the
privilege Of buying and selling with
these other l 1888 members is SO valua-
bic is that more money is poured into
the hands Of these same members for
the purposes of trading than is fur
nished to ten times that number
OF men anywhere else in the United
States.
This alone would not explain the
fabulous value Of these "standing-
Toom-only" privileges. The far more
important fact mus. be taken into
consideration that the United States
is upon the verge of becoming the
most important commercial nation in
the world and the New York Stock
Exchange serves as clearing house
for the myriads of dollars that must be
used in developing the wonderful re-
sources Of this countrv
It was only year ago that seats on
the New York Stock Exchange were
selling for half their present figure.
The unprecedented "bull'' market
that followed the second election of
Mckinley for President sent the pri-
ces for seats climbing. Up, up, and
still up they went until few days
before the collapse of May 8, 1901,
when they were bringing more than
$4,000.
The panic came and went, however,
with no dimunition in tho price of an
Exchange scat. Wall Street felt that
prosperity would continue and the
privilege Of doing any business
on the Exchange would be
ever more precious. And SO there
has been steady appreciation of the
value Of seats until the high water
mark of $4,000 was reached few
days ago. This sum really signiGcd
that the seat cost the buyer $S2 900,
for in addition to the sum he had to
pay the previous owner of the
seat he had to pay an initiation fec of
$4,000.
The inquiry very naturally arises
why cannot an outsider do just as
much trading upon the Exchange
through brokers who arc already there
without paying tho enormous price of
a seat? The reason is this, that an
Exchange member can do his buying
s1d selling at ono-half the expense an
outsider will incur. If man wishe
to invest in 100 shares of stock of a
par value Of 500 share, he must pay
his broker $3.50 for making the pur-
chase, or one-eighth of per cent of
the par value. If one Exchange
member wished through another Ex-
change member to purchase the same
shares he would have to pay a COM
mission of s6.25, or one sixteenth of
per cent. Under certain circumstances
the members commission would be
even less.
In addition to all this the Exchange
member cannot publicly buy and sell
; securities anywhere OF the Stock TX
change floor. He cannot be member
OF any other exchange which deals in
stocks, bonds, &c. This is to say, in
effect, that he must do all his bust
mss on the floor Of the Exchange.
Further attraction for the Stock Tx
change is found in the fact that the
best securities offered to the investors
aie first offered to the members of the
New York Stock Exchange, in so far
as the United States is concerned.
The privilege Of "listing issues
of stock" on the New York Stock
Exchange is considered to be
ample evidence of their gilt edged
character.
The hours for business are so short,
the number Of shares to be bought and
sold SO large and the methods of re-
cording transactions so fragmentary,
additional value for the Stock Ex-
change must be found in the absolute
guarantee of the safety and binding
quality of contracts. The business of
the Exchange is done upon a strictly
cash basis. A member unable to full
I'LL his contracts must make it known
to the Exchange at once. Insolvency
is an objectionable sin. A man may