The Birmingham age-herald., 1903-07-12

the history of Wall street in order to appreciate it's large and beneheient rea- tion to the prosperity of the country. Wall street and the country"-they have grown together; the latter in no small degree as the result of the former, and today so closely are they connected in every vital interest that one can not suffer without injury to the other. A sudden fall in securities in Wall street may disturb the business of Kansas, and a failure of the corn crop may cause panic In the stock market.
 The first contribution to the mechanism of Wall street was a bank After the war of the revolution the now free and independent colonies were left exhausted after the long struggle with England confronted with the enormous task of developing their resources by their own exertons Almost the first want that was felt was the need of bank. Now , bank Is a tool of commerce, an agent of agriculture. It is clearing house for trade, It facilitates the marketing of products The exchanges of the world could not be conducted without It. Some one has we'll said that the three great departments of nations wealth are; 1. Production. ?. Transportation. 3. Bank Ing. In the early days of the nation banks came next to production for their creation preceded the digging of canals and later the building of railroads.
 In 17s4, five years before the inaugura- ton of Washington, the Bank of New York was established on a plan drafted by Alexander Hamilton. who, seven years later, as secretary of the treasury, drew up the bill for the creation of the first United States bank. In 1901 there had been twenty-three banks established. Here, then, we had the beginning of money markets.
 Genesis of the Stock Market.
 The stock market followed closely on It's heels. Dealings in stocks are a de- velopment of modern business Stock companies in the form they are now known, were first introduced early in the seventeenth century, but 1t was not un- til late in that century that certificates of stock became the object of public sale Then the English stock market sprang into existence, being located for nearly 100 years in Change alley. the London stock exchange not being organ ized until 1773.
 There has been no other invention in centuries that has so enormously in- creased the facilities of business as the establishment of the stock company. It has permitted of the convenient aggre- gation and organization of capital so as to enable great enterprises to be carried on and great works to be accomplished. At the same time it has opened new avenues for investment. It has enabled multitudes, through the ownership of shares of stock, to be partners in stu pendous undertakings which would oth- erwise have been reserved for monarchs or governments or few favored indi- viduals.
 The formation of stock companies and the issuance of certificates representing shares in these companies led naturally into a market for the sale and purchase of these shares, and as soon as the mar ket became large enough 1t was organ ized into a stock exchange. This was the financial history of London. It is also the financial history of New York
 The organization of banks led to de- mand for their shares and a market de- veloped for them. Then the new govern ment of the United States issued bonds called stocks, to take up the war debt of the colonies. These bonds became sub ject to purchase and sale. Very soon class of brokers in securities developed. These brokers were accustomed to meet under a buttonwood tree near where 6S Wall street is now; there began the Wall street stock market The daily sales at that early day consisted of only four
 
 stocks, three insurance stocks. and bills of exchange on London, Hamburg and Amsterdam.
 The Brokers Agreement. Early in 1792 the brokers entered into written agreement, pledging themselves to maintain a certain minimum rate of commission. This Is rightly regarded as the beginning of the New York stock ex- change, although it was not until twen- ty-five years later-in 1S17-that the ex- change was actually organized By that time many new banks had been formed i, and new companies organized to develop the land commerce of the country. Phil adelphia, then the principal city, already 
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