Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-09-07
BOSTON EXCHANGE
NOW IS YEARS old
Started by Thirteen Business
Men-363 Bonds and 313
Stocks on Board Today.
epecial pIspstch 70 rae star.

Special Dispatch to The Star.
BOSTON, September 6.--BoSton has
had a stock exchange for almost 100
years-96 to be exact-the Boston Stock
Exchange having been organized on
October Is, 1884. Its operations have
been continuous, except for one break,
that resulting from the chaos created
at the beginning Of the World War, or
rom July 30 to December 10, 1914.
Even in the panic of 1887, when many
of the other exchanges were obliged
to suspend activities for time, the
R2ston Exchange continued to operate
The Exchange had its beginning
through the foresight of a small group
OF local men, who realized the impor-
tant part which an organized securities
market might play in the business and
industrial upbuilding of New England,
and OF the country as a whole.
An Auspicious Start.
These and many other facts are pre-
scented. in 32-page brochure-"The
Boston Stock Exchange"-which has
Just been issued by the Exchange
through the Office of its secretary,
George A. Rich. A glimpse into the
period when the Stock Exchange was
founded, as given in this book, shows
that Few periods could have been more
suspicious for the starting of a stock
exchange than the years between 1880
and 1887. This was the period which
saw the birth of the American rail-
roads. 1t was the period, too, which
witnessed the extinguiShment Of the
Government debt and the return to the
various States, by the United States
Treasury, of more than $30,000,000 of
surplus revenues.
"It was also the period of settlement
for a number of foreign difficulties,
particularly between England and
France, and a corresponding growth
in the available investment and specu-
lative capital of those two countries.
Due to the high state of American
credit, by reason of the liquidation OF
the National debt. large amounts Of
this English and French money sought
an outlet in the United States. True,
in 1884, a crisis was precipitated by the
withdrawal of Government funds from
the United States Bank and con-
striction of credit followed, but by the
end Of the year, when the local e.. ex-
tor had been well discounted, and the
country was preparing for the years
1885 and 1886. long known as the
golden age of borrowing
Continuity of Membership.
Available securities when the ex-
change started were very limited, con-
sisting largely of stocks Of banks and
insurance companies, local mill and
canal projects, small mining enterprises
and various types of public debts.
Starting with Is members, the Boston
Stock Exchange IN 10 years had grown
to 50, and within the following decade
to rs members The long-continued
business boom of 1879 created such a
demand for memberships that the ex-
change then voted to sell enough adj
ditionai ones to bring the membership
to $50, where it remained for many
years, later being reduced to 139 by
purchase and cancellation Of IL MEM
berships. Continuity in this member
ship has been one of the features of
the history of this exchange. Although
within four years Of its centenary, the
men who have at any time been men,
bers have scarcely exceeded $50 in
number. and the sons of two of the
founders ere active members at pres
ent.
Remarkable Growth. NO
AS evidencing the marked growth Of
the Boston Stock Exchange, IL may be
cited that as Of July l, 1880, there were
listed upon the exchange the bonds of
265 different corporations, representing
1853 separate issues and having face
value of $3074, 637, 900. On the same
date there were listed the shares of 313
corporations, representing SIS mining
enterprises largely copper, "a rail-
roads, so manufacturing plants and 172
miscellaneous enterprises, including pub
lie utilities, holding companies and in
vestment corporations. OF the 313 cor
porations, So are essentially New Eng
land in property, ownership and man
agement, and 20 others, now of ma
tional interest and importance, had
their origin and direction from Boston
efforts and capital, and local owner
ship and influence are still great in
their affairs.
On January 10, 1892, a stock ex-
change clearing house was organized in
Boston, the second of its kind in the
country.
The book is illustrated by a repro
duction Of an early print of the Mer-
chants Exchange Building In 1912, the
first home of the Boston Stock Ex-
change. together with original draw
ings Of the exterior of the present quar-
tiers, Q corner of the present trading
room and board room and members
smoking room. The book also contains
q list Of the Governing Committee, ON |
GERS and a complete list Of the mem
berships.