New-York tribune., 1909-09-25
FUNCTIONS OF WALL ST
USES OF SPECULATION.
Students Recognize That 1t Ha
LEGITIMATE Place IN Economics.

Leg1QMQEC II bCC Hb hCOtVH''CN'
Trrere are centres within centres, and follow
Ing out the theory. one fnds that the centre g
financial New York Is Wan Street and The
New York Stock Exchange. Wall Street D.
a generic term which long ago IN its sppheation
ceased to be confined 70 the narrow. D'tIe high
way running from Broadway 10 The East River
and couprehends broadly the whole system OF
traffic in securities. with its allied ramIhcations
of banking and commerce. History bss a that
the first transactions in stocks in th' city OF
New York took place under a shady button
wood tree in front OF Nos IS and 80 Wall street,
in 1892. Congress had just AUTHORIZED its first
issue of national bonds for the payment Of STs,s
100000 in war debts Per5ons outside Of The
city who wished 20 invest In the bonds OK
stocks as they then were called. sent their com
missions to New York 20 be executed. This gave
rise to employment for class OF stock brokers'
who speedily felt impeled TO organize The fnAl
outcome was written compact. which fornls
the earliest OF the documents preserved by tfe
New York Stock Exchange. In this agreement
twenty-One persons and three firms bound them
selves not to sen public stocks at less than ono
fourth Per cent commission. 10 was not unt0
1917 that the New York stock and Fsxehangs
istence The traditions and the essentials In The
constitution and bylaws Of the organization Ars
in many ways curiOusly similar 20 those which
now, nearly a hundred years later govern The
transactions OF members Of the STOCK Exchange.
No was eligible for membership who had
not been Z broker Cor year. was apprea-
tce or clerk TO a member for two years imme-
diately preceding his election. Three blaekoauS
would exclude a candidate The initiation fes
y.aG Trrn
suspended, and could be reinstated after a care
ful investigation Of their affairs. only by a yots
OF two thirds Of the members present. The COM
missions TO be charged were fixed By schedule
and stocks and bonds could not be sold in less
than $50 lots and doublOOns In not less thar
sums Of S4e. All sales were required 70 be see-
tied the following day, and fictitious. OF wash
sales were punished by immediate expulsion.
AN IMPORTANT MEDIUM.
Wall Street and the advancement Q. New
York and of the country have been interdepen-
dent upon each other without the enc the
other could scarcely have foUrished ar. existed
This country has Si4. J0OtDNCO0 Of the SIIIOOO,-
100000 of the worlds negotiable securities or
about One-third OF the whole. New York Is ths
main market and Wall street the medium Of
exchange FOE the United Statess s sS5OlNO0Oo0
Oh securities. IL has been estimated that these
FN@''V'''V'SVoN represent nearly SD Per cent on
the wealth OF the country and that q NTH OF
the wealth is represented in securities listed
upon the New York stock Exchange
Putting il in another wav the two D,fu,or IN
Sestors who own Stock Exchange securities own
NTH Of the wealth Of the country The Stoca
Exchange sales last year were I96S21 .s75
shares In the past twenty years new securities
nave been listed by the Stock Exchange al the
rate of S1.Oo0000.OO0 worth a year some Of
winch represented reissues. but most - which
were new.