The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-04-29

Special Correspondence of The Journal. ~
w. ARIS.-The name. Of John Law,
he of "South Sea Bubble
fame, an. early day promoter who
might safely have sat in game with
the Rogers Rockefeller Morgan crowd,
seems so inseparably interviewer with
financing and speculation in France
that a discussion Of the Stock Exchange
Of Paris would be incomplete without
the fever for speculation or gambling of
q broader nature than mere games,
which Law developed in the volatile
Frenchmen in the early part of the
eighteenth century, doubtless led to the
beginning of the Stock exchange. The
"Bourse' IS the building occupied by
the exchange 49,
In 1716 John Law founded the Bank
Of Paris. with capital stock Of 100000
francs, $1,200,0OO. Shortly thereafter
he established the West India company
with capital of $20;00o:0O0. In 1719
this was increased to $59,o00,0oo Then
began period of wild stock specula-
ton such as the world had never seen,
and the intensity of which has never
but one end--collapse; but speculation
in stocks had had beginning, and it
was a game too good to be entirely lost.
Beginning of the Paris stcck Exchange.
The Stock exchange of Paris, the ex,
Agents of Change ''-Compag nie des
Agents DIES Change-was established
during the early part of the eighteenth
century. It was organized by a few
wealthy and conservative men, in
strong contrast to the speculative
schemes of Law, and received a charter
from the government.
A -
change is that it is entirely under gov
eminent control. Until few years
ago the membership was limited to
sixty. Then it was increased to
seventy. which is the present limit;
until vaeancy No is A Caused i' bv death th'l
dismissal. Six members were elected
In 1905, and two in 1906, UP to the last
Of March. The oldest member dates
from 1869. Applications for member
ship must be approved by the govern
ment before the applicants can be
elected. The members are called
!ssAgents de Change,' with a strong
French accent
Early Conservatism.
AS already said the Agents de
Change were a conservative set of men.
At the present time they are forbidden
TO speculate or trade for their own &C
count, They are supposed merely to
act for the public. Only a few stocks
or bonds, principally government, were
ct first traded in. This, Of course,
kept the market narrow one, tho com
Paratively safe. Owing to the limited
membership it is not difficult to retain
high standard among the members.
One Of the well-known and respected
members Of the exchange is Count La
Fayette, descendant of General La
Nv
for his valuable services in. the revolu.
lion.
was particularly fortunate in meet
ing Count La Fayette, and he instantly
yPange red to to gde me ahSHt the
much information and many courtesiea
Many Americans will remember
Count La Fayette, for he accom-
panied party of distinguished French
men to Washington to attend the un
-a-vellIng of the Rochambeau statue in
1902. He is now apparently about as
years of age. He is a gentleman Of
Fl and of
such men in Europe who can Interest
themselves in finance and commerce.
The stock market became too marrow
or the public and for others who hat
desire to enter into the stock broker
-~~=tge business. The. result was the be
glnn!ng OF an Independent exchange
which. has developed into larger in
The "coulisse.':' ..-.-
,hange are called ia Coulisse - :
which, like many French terms, convey
IN insinuation hard to interpret Thi
a theatrical term, meaning Gin tn
-yings.'' In semi-slang I should sd,
hat the coulisse are hangerson to tn
cal thing, in which they cannot PAL
DEPENDENT exchange Indicates this /
$ "Syndicat des banquers en- valeur
terme pres la bourse de Paris.D Tha
S, Syndicate of bankers in securitie
or account (also for cash transaction
'Lear' the bourse. +"
80 That little word, "near,'' conveys
World of meaning, when understood
The exchange of the coulisse is . near
he bourse, both literally and fgurativt
y. 1t u.s., in fact, on the broad, hig
,orch Of the bourse, in the open air, til
curb of America. It is "near > t
he bourse also in that the interests @
he two exchanges are closely alice
nd as the members of each give o.
ters back and forth in the two e.
Ranges.
Yet the same stocks are not trade
both exchanges When stock j
isted in the bourse, il. is withdraw
rom the list Of the coulisse.- = s5-s5s:
1t is rather a novel sight, on ii
Teat porch at the top Of the marb]
teps, to see the solid groups of til
oulisse frantically trading in stocl
nd mining shares, Imagine sever;
undred naturally quick and excitabl
renchmen in the pit of the Chicae
Board of Trade, Or on the floor of tt
Jew York Stock exchange! Of cours
othing can exceed the intensity of tt
train and excitement during a vii
larket on these American exchange
hen it seems almost tragic to those Q
he inside. But while I am told thu
ere the traders become frantic durin
xeiting markets and one can easi]
elieve it-yet in an ordinarily acti1
,arket, the trading impressed me MOI
sa rapid-fre gun at target practi,
ather than as if there were an enem
front.
In America the barbarous custom