New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-24
FINANCE 4 INVESTMENT
TWENTIETH ARTlCLEl
BY Marc m. Reynolds.
Stock Exchanges.
(TWENTlE
n 49,

Tho importance of stock exchanges
should not be underestimate by the pun
lie. Stock exchanges have developed
through necessity to assist in the ais
tribution of the fruits of human effort by
providing centres for the quick exchange
Of securities. thereby providing money Tor
the great corporate institutions oi the
world. The same reason exists for the
stock exchange as Tor the primitive mar
ket, the Produce Exchange. the Coiicc
Exchange. the Cotton Exchange and
other similar institutions II brings men
and money together at central points and
saves the tedious and expensive method OF
seeking each other at scattered places,
which in this rapid age practically would
be impossible. There are numerous logi-
cal arguments why stock exchanges are
Indispensable, as there are why pubhc
markets are maintained for the distrlbu-
ton of merchandise instead of depending
on the primitive pedlers who once sold
Yankee notions from door to door Like
all human agencies. stock exchanges nave
some abuses, but they are growing FEWER
each year. and the prepolderance OF Soou
and the high purpose they serve MAKE
the incidental faults of only passing I'M
portance to the business world.
New York Stock Exchange.
The New York Stock Exchange and
Wall Street have been conspicuously as
ISOLATED with American history since
the latter part of the eighteenth century
particularly. dating from March. l'92,
- a.
organization among dealers in securities
was made through IA local newspaper. oli
March q of that year a meeting oil me'-
chants and dealers in stocks WAS hclu
and a committee was appointed TO pro-
vide a proper room In when 20 assemble
and TO report such regulations relative 10
methods of transacting business as III
their opinion they deemed To be proper
The outcome Of this meeting was the hrst
agreement between security dealers no"
the oldest record in the New YORK STOCK
Exchange archives. For some Tune AFTER
their organization the early brokers dld
their business in the open. Under an Ola
buttonwood tree which stood IN the north
side of Wall street, on a dividing line
now occupied by building at No. g.
business in trading as they had each day.
which in volume. however, was not Yer!
heavy. and aside from the shares In
United States Bank, the Bank OF North
America and some half dozen or more
other securities there was little LETT eA-
cept betting on the results Of politics ana
dealing in merchandise.
The first building occupied by the brok-
ers was the Tontine Coffee House. at the
northeast corner of Wall and william
streets. This was completed In 1913, ana
ARRANGEMENTS were made by the brokers
to secure quarters in that building. In
1917 the New York Stock and Exchange
Board was organized and constitution
adopted Among tho rules was "A pro
vision for the expulsion Of any member
found guilty OF making fictitious con
tract or what Is to-day known az wash
sale" so 1t may be seen that even I'm the
early history of transactions in connec-
ton with the Stock Exchange the ten
dency was to keep It's business dealings
I'D TO q high standard. Up 10 the period
Of the panic Of 1887 no great market
leaders had developed and transactions
we're limited, as American railroads had
not figured In the list of securities
dealt IN
The panic OF 1885,. however. developed
Jacob Little, who made and lost Il mum
Der OF fortunes in Wall Street speculation
Tho name OF August Belmont as a Wall
Street figure also dates from the crash
OF 1897. Mr. Belmont came from Havana
10 New York in that year as represen-
tative of the Rothschilds. The listings OF
railroad shares on the New York Stock
Exchange practically began in 1898. The
first stock listed was that of the Camden
g. Amboy, which was soon followed by
the Lehigh, Harrisburg a Lancaster. the
Richmond. the Reading and others. and
in two years American railroad stocks
developed to popularity and prominence
both I'm the New York and London stock
markets
Go be continued Monday, March 3l)