bulwark; to the cotton and coffee trades their
exchanges represent‘the‘ head and front. of their
business life: -.. .- ~. ' ' '3' .
f . SOLID-BUSINESS" WORTH.” ~
The Stock Exchange has a legitimate ‘place' in
the cemmunity that demanded its ‘existence and
insures its continuedxgrowth andpopularitx It
furnishes the facilities for theregular and con-
stant.:Sale and exchange effsecurities and ef-
fects‘t‘ransactions without difficulty or idelay.
It.regulates- and controls quotations. The ready
market given the associated resources of the
Country through the medium of such an institu-'
fibn has ever been one of the mainsprings of its
success. There would 'be no 'such opportunity
to’inuv‘estlmoney in great Operations were it not
for such a ready market for-”the great volume of
railroad and industrial shares and bonds. ’All
6! the great financial systems of the country
are in a. manner controlled'by the mechanism
of the Stock Exchange, and although there are
many who charge that speculation is the prime
factor and chief employment of the members, a
close investigation will show that such a state-
ment is far from true. Speculation might be
mentioned only as an incident in commercial
life... , '
At the present time the Stock Exchange num—
bers about eleven hundred members. When it
Was opened on May 17, 1792, there were only
twenty—four. members. ‘_In the office of the sec-
retary of the Stock Exchange is a badly creased,
y ow, 'torn piece of paper, which to‘ the Ex-
change is as valuable as is the original copy of
the Declaration cf Independence, now preserved
in Washington. This original Stock Exchange
document shows that twenty-four men, who evi-
dently had'been working independently of one
another, met and signed an' agreement to buy
and sell stocks at not less than"”“on'e—quarter
per cent commission on the specie value,” and
that “we will give preference to one another in
our negotiations.” "
’ This meeting was held' under; a. cottonwood
tree in‘front of what is now No. 60‘ Wall-st.
When the weather was pleasant ‘the members
gut together in the open‘air, but on stormy
"days they went to the office of Some friendly
broker, and there bought and sold the stocks'in
which they dealt. ‘ From these office meetings
grew the‘present Stock Exchange. From an an-
nual admission of nothing the value of member—
Ships has run up sothatat one time they were
“Worth not less than $40,000.
{'2 - '
g, NEW REAL ESTATE HOLDINGS.
I: The building of the Exchange is an imposing
0
structure in spite of the comparison which may -
be made with newer and more expensive struct—
ures which have been erected in all parts of the
Wall Street district. It occupies asitefbetween
Broad and New sts.. with a frontage of 65‘feet"
in Broad-st. and 158 feet in New-st. During
the fall just passed it became kn0wn that a
deal had been effected by which the adjoining
property, occupied by the Western Union Tele-
graph Company, had come into the possession
of the Stock Exchange. The price paid for this
addition is- said to have been $800,000. ‘ This
does not mean thatthere will be any immediate
changes in the floor space of the present Ex-
change. Nor will the new property be altered or
rebuilt for several years to come, as the VVcst—
em Union company is understood to have a
lease running until 1903. So far as can be
learned, it is the intention of the managers of
the Exchange to take the lower floor of the prop—
erty just acquired and thrOw it open in connec—
tion with the present building, in order to give
additional floor space for the growing business
of the brokers. The upper part of the building
may remain unchanged, the Exchange drawing
a large income from the rent of offices, until
such a. time as it may see fit to erect a new
edifice. ‘ .
The present building was designed by James
Renwick, the architect for Grace Church and
the Roman Catholic-Cathedral. The large, spa-
cious Board room of the. Exchange occupies
nearly the whole interior of the building, while
the executive offices of' the Exchange are on the
Broad—st. side, in the second floor. The floor
space of the large room where the daily trans-
actions take place covers 141x145 feet, with a
ceiling 80 feet above the floor. The room is in
the shape of a T, and covers about fourteen
thousand square feet. x
’Around the walls of the Board room runs a
gallery. This is for spectators, and every day
finds a greater or less crowd of onlookers who
take a. keen enjoyment in watching the antics of
the swarms of brokers below. A visit to the
Stock Exchange is quite'the thing for all out-.
of-town visitors, and certainly furnishes an in-
teresting scene. Many persons who have never
been informed of the methods under which the
buying and selling of stocks on an exchange
floor are conducted have been completely dum—
founded at the sights of the Exchange To
them it appeared more like a bowling mass of
wild Indians. On days of excitement, when the
market is rapidly rising and falling, and there
are big deals on and fortunes to make and foes
b wipe out, the scene is one which almost
baffles description. The vocal gymnastics of the
members create an uproar that would drown
the mighty roar of Niagara, while the rushing
no running 'to and fro, the Jumping up and
down would convince the onlooker that it was
all a scene from a madhouse. ' '
EXCITING TIMES "ON THE FLOOR.
To the one who knows it meanstbusiness. It
means transactions which amount to the mill-
_, ions, and denotes'well-planned coupswhich have
,u-a. '
\
frésult of 8. Tobacco slump. Prices ”fell, from
§about‘ 145 to 115 in'a few days, and the scramble
§of those who were squeezed will not soon be for-
' :gotten. For-Tweak following the papers were:
full of articlesein, whichitwas shown that To-
fbaCCo stock had been under masterful manipma'
Etion for over. a year. All'of'tlie details of the
;story Were brought out, and made interesting
Ireading. It was Shown how‘ from‘August,"1897.'
.to August, 1898, the stock had‘beenuforced up
from around 80 to 150. _ . Thiswas a good year‘s
work, and the big men in the deal no doubt
realized handsomely when they let go of their
stock. But this is only one of"many" stories.
.The history-of the Street is full oil-just such in-
cidents. . .
Only those who are members have the right to
admission on the floor inside the sacred railing.
Here there will be seen numerous little groups
gathered around a sign bearing the name cf 8.
given security. Every part of the room is given
over to some particular security, and transac-
tions between the brokers must be made in the
proper crowd in the presence of other brokers
lwho may. desire to trade in the stock in question.
The trading in all instances is governed and
controlled by strict rules, which are rigidly ad-
hered to. The first bid or offer made has prior-
ity until accepted or displaced by a higher bid
or a lower offer. In former days the entire list
of stocks was called off by the presiding officer
from the. rostrum. This occurred several times
in the course of each day’s business hours, and
thus bids and offers were exchanged. The busi-
ness, however, developed to such.“ proportions
that this method was abandoned in 1875.
Quite contrary to general belief, the New-York
Stock Exchange is not incorporated. It makes
no reports of its affairs, .keeps .no records and-
restricts its management to the careful atten-
tion of the needs and requirements of its mem-
bers; Any'member can sell or‘ dispose of his
seat upon the approval of the Committee on
Admissions. In case of death a member's seat
'is an asset which can be disposed of by his legal
representatives. The annual ‘dues' of the Ex-
change are $50,"and whenever a member die-s
there is an assessment of $105 on each'certifi-
cate, which provides an insurance of $10,000 for
his heirs. While a. majority of the members of.
the Exchange are partners in some brokerage
house Which gives'the firm representation on the
floor, there are many who operate for them-
selves and are known under the name of “room:
traders.” ’ ' ‘ '
HOW BUSINESS IS CARRIED ON.
Of the thousands of readers of the daily press,
throughout the country there are only a few who:
understand-the methods by which speculation.6
and investment are carried on in Wall Street:
The followinggeneral description is from one of,
the leading brokerage firms on Broadway, and.
fully sets forthrthe details and methods in vogue.
at the present time:
“For speculative purposes stocks are generally
bought on margin instead of paying the full
value in cash. Thus, if the margin is 5 per cent
of the value of the stock, the broker receives
from his client 85 for each share purchased and
supplies the balance of the money to pay for the
stock, holding same until sold. Sometimes more
margin is required, when the market is excited,
and when not too active a margin of 3 per cent
is sufficient.
“If a customer buys one hundred shares of
Sugar Stock at 115 on five points' margin, his
broker receives the Sugar certificates and pays
$11,500 to the seller. The broker has received
$500 margin from'his customer, and he advances
$11,000 on the stock certificate as collateral and
charges his customer interest on this amount of
money, usually at 6 per cent per annum. If the
customer is able .to sell out later at 120, the
broker receives $12,000 for the certificate, which
shows a gross profit of $500 to the customer,
out of which is taken the broker’s commission
and interest at 6 per cent on the amount of
money advanced to carry the stock. '
"‘If, after ‘the customer has bought at 115, as
above supposed, 'Sugar, instead of advancing,
should decline to'about 110, the broker, in order
to-protect himself, would have to sell out'the
Sugar stock unless his customer put up more
margin. The rules of the Exchange allow him
to do this when margins are about to run out.
In an ordinary market the customer's loss could
be stopped at exactly his limit of funds, but in
wild markets the broker might be obliged to sell
a little before the limit of funds was reached, so
as not to miss the opportunity.
. “Ten is the lowest number of shares carried on
margin. The cost at par would be $1,000. A 1
per cent rise makes a profit of $10. An advance
of from, say 80 to 81 is called a 1 per cent rise,
and the value of the“=ten shares has increased
$10 or $100 for each one hundred shares.
"The operation of buying and selling securities
on margin affords unusual opportunities to op-
erators to make profits on transactions where
buying outright and paying spot cash for pur-
chases might not be convenient. For this rea—
son, during the last few years trading on margin
has become deservedly popular, and has grown
rapidly in public favor. This system allows the
less wealthy operator to have the same ad-
vantage in the stockmarket as the man of mill-
ions, and is just as safe to the operator and his
broker if judiciously conducted.
CON FLICTING PARTIES.
The brokers on the floor of the Exchange are
divided into two groups—bulls and bears. The
bears are anxious to have the market sag off,
and therefore use every effort-to depress prices.
On the other hand, the bulls are out for-higher
prices and a market that is brimful of life and
activity. As has already been mentioned, there
were dull times among the brokers for the years
following the panic of 1893, and the majority of
traders were undoubtedly bears in sentiment.
been brewing, maybe, for a year or more. ' One
of the interesting days of recent months“ was the
The present year has been characterized by a
bull movement of pronounced proclivitiea. In-tho
. Immopomm ‘ HOIIDH
.summer of 1897 the bull movement culminated
'along' irrAugust, it is stated. .’ While the bull.
imovement of the present year also-showed signs
,jo'f reaching its end in August, and, in fact, saw,
ga‘falling off in prices as a reisult of the St. Paul
idividend and.- Tobacco incident-s: it= :wa's-‘only
{temporary in, character. -'The market held res-,-
,lmarkably firm, even in the face, of adverse cir-
;cumstances', and immediately after election be-
.gan to' creep upl-again; ' . ' ~
At the. present time: those who. compose the
:financial. circles of the city are inclined, to con-
gregate on the bull side of the market. It is
argued that the general-“commercial and finan-
cial conditioris of the country can'be locked upon
in no other light than as bull factors. Peace has
been declared after a war in which the Ameri4
can Army and Navy distinguished itself. The
Treasury at Washington is in-excellent shape,
and with'the war-revenue tax in force there-is
nothing to .worry about .in that direction. The
cropsgive promise of big returns, which means
large railroad earnings. Already the reports
frmn the roads in all parts of the United States
have shown gains of a most substantial and
gratifying character. .There is more money
circulation than there has been for some time
past. and the banks have well-filled coffers and
the rate of interest on loans is low. Confidence
has been restored in a great measure, and man-
ufacturing interests are'devcloping an activity
which promises wéll for the laboring classes. All
in all, the situation is considered, so the authori-‘
ties of the Street announce, one of great merit.
______._.___.__
THE PRODUCE EXCHANGE.
ONE on THE LARGEST INSTITUTIONS or
11‘s KIND IN THE. WORLD—WHEAT
‘ PRICES FOR THIRTY-
THREE YEARS.
Few buildings in the lower part of the city
have attracted more attention in the past than
the handsome, solid structure'of the New-York
Produce Exchange. Standing at the point where
Broadway begins, it'cc'Jmmanded‘ in former
years, before the sky-scrapers became so numer-
ous, the eye of the home-coming mariner, and
attracted the immediate notice of ocean trav-
ellers on their way up the Narrows. In com»
mon with The Tribune Building. the Brooklyn
Bridge and Trinity Church, it was accustomed
to call forth the admiration of the stranger.
At the present time, in spite of the numerous
towering buildings which have sprung up on
all sides, the Produce Exchange remains one of
the notable architectural features of the city.
Of heavy, solid, massive construction and infr-
pressive outline, it is destined to hold its own
for many years to come. The architect and
builders planned and builded better than they
' knew, and looked clear beyond themselves into
the untold possibilities of the future. ’ Of the
modern Renaissance in style, the general effect
is imposing, and imparts the idea oft‘jstrehgtxi'
and permanence. Its construction vilisgbegun on"
May 1, 1881, and it wasfinished three years.
later, in 1884. The foundations were secured
by driving down 15,000;_.,New—Engla_n_,d-..pine and
spruce piles to""a solid bed.”
~ A . HUGE STRUCTURE. '
The building: is fireproof throughout. Granite,
brick, terra cottta. and iron are piled above the
cornerstone, bearing in lasting bronze the word
“Equity," that was laid on» June 6, 1882, making
a. structure 307 by 150 feet, Which, with the
tower and terrace, comprise 53,779 squarefeet.
From the sidewalk to the roOf 'the distance is
116 feet, and to the coping of the tower, 225
feet. So successful was the original building
that an annex was built to accommodate the,
large number seeking offices for business in con-
nection with the Exchange, the total number
now being four hundred. This addition is ‘on
the east side of the main building. The original
cost of the main building, including land and
furniture, _was $3,178,645. From any stand:
point the Produce Exchange is unsurpassed by
any structure of its kind in the world. The
floor of the "Exchange is on the second floor,
covering 'a space 220x144 feet, with skylights
sixty feet high. This great arena-like room
affords possibilities for every conceivable de-
mand 'of' "the grain trade. Dong tables hold
samples of every kind offlgrain, andbuyers,
sellers, commission ‘men and export agents
gather around them each day and ti’ansact busi-
ness of great volume. The tetal exports;of
breadstuffs for nine months only of the present
year, ending September '29, were $208,175,470,
and the total of provisions, including meat,.hog
and dairy products, was $113,494,135. A large
portion of this enormous export business; is
transacted in the New—York Produce Exchange.
It will be readily appreciated that a large fl00r
space is essential for commercial operations of
this magnitude. The main building required
12,000,000 brick, 15 miles of iron girders, 1%
miles of columns, 7% acres of flooring, 2,
WindOWS and 1,000 doors. The purpose of the
Exchange, as expressed in its charter, is as fol-
lows: “To inculcate just and equitable principles
in trade; to establish and maintain uniformity
in commercialusages; to acquire, preserve and
disseminate valuable business information;' to
adjust controversies and misunderstandings be-
tween persons engaged in business, and make
provision for the widows and children of de-
ceased members."
FLUCTUATING VALUES.
The membership is limited to three thousand.
At the time of limiting the membership the
initiation fee was $2,500, but certificates of
membership are transferrible, and have been
sold as low as $275 and up to $4,700. The Ex—
change is authorized by its charter to .own
property to the extent of $5,000,000. The cor—
poration is governed [by a president, vice-presi-
dent, _treasurer and twelve directors, who to-
gether constitute the. Board of Managers. . A
standing committee is appointed by the presi-
dent, with the approval of the Board, for each
of the trades, to which all disputes arising in it
may be referred for arbitration, at a cost of $15
to $25 to the losing party. An assessment of
$25 is levied on each membership, which goes
toward defraying all expenses of, maintaining
the Exchange. Any controversy, excepting
(claims to real estate, is within the jurisdiction
fof the Arbitration Committee, Judgments of
file Supreme Court of the cit'ybf -Néw~7Yorki*be-
:forenconsoiidation', could; be-‘ rendered on- these
idecisions. .The,~_Exchange-.rooms--tafe open for
:business,,from' 91.3.. , m. _.,t_o ,4 p.) m., with .a half-
?holidayon Saturdays.,_,,..- . _' ‘ .. '
Outside of then-legitimate operations in: bread-
jstuffs and provisions, the speculative trading of. ‘
jthe Exchange is confined chiefly to the wheat
pit. , The year just closing has been. remarkable
for the collapse ofthe great Leiter wheat deal,
which had assumed such gigantic proportions
:that its fame had spread to the uttermost parts
:of the.world. Although'Ohicago was the centre
from which Leiter operated, New-York played
no unimportant part in the rvariousscenes Of the
corner. There were scenes. of wild excitement
when the price for wheat was sent. to $1 85, and
also when the recession roccurred, and the subse~
quent fiasco. During the year the demand for
export grain has been almost unprecedented.
and it was with dlfiiculty that sea craft could
be chartered to transport the orders. Wheat.
corn and oats in speculation are sold in mul-
tiples of five thousand bushels. The Produce
Exchange is the largest in the world in point of
membership, and has a gratuity fund of about
$1,000,000, which assures the heirs Of a de-
ceased member the sum of $10,000. An average
day's business at the- Exchange is about $15,-
000,000, and it may be said that the greater
part of the farm products of the Continent are
marketed in New-York through the Exchange.
The followmg shows the highest and lowest
prices for No. 2 spring wheat in the Chicago
market for the last thirty years. and the months
in which extreme prices Were reached:
. . Months the Yeari ran M
Yeatsi lowest prices,‘ —-——. . y—ge. higgglpfloum.
were reached. Low. I High. ' ' were reached.
1883. .4 December . . $0 85 $1 55 Januar
1866. . February .‘. . .- 78 2 03 ‘ Nov’emger.
1867. . August ...... 1 55 2 85 May.
1 November 1 04 2 20 July.
1869 December 7 6% 2 47 August.
1870 April ........ 73%. 1 31% J uly. ,
1871. August ...... 99% 1 32 Feb., April and Sm
1872. . November .. . . 1 01 1 61 August.
1873. . September . . . 89 1 46 July.
1874. . October ...... 81% 1 28 April.
1875: February . . 83% 1 30% August.
1816 July ......... 1 26% December.
1817 August ...... 10135 176% Main
1878 October ...... 77 1 14 April.
1879. January ..... 81% 1 33% December.
1 . , August ...... 86% 1 32 January.
1881.. January ..... 95% 1 43%. October.
1882. . December . . . . 91% 1 40 April and my.
1883.. October ...... 90 1 13% June.
188}; December . 69% 96 February.
1885. March ....... 737$ 91%. April.
1886. October ...... 84% January.
1887. August ...... 66% 94% June.
1888. April ........ 71% 2 00 September.
1889. June ......... 75 1 08% Februztl'}y
1890. February 74% 1 0854 August.
.1891. July ......... 5 1 16 'April. ’
1892. [October ...... 691/3 91% February
1893. . August ...... 58%, 83%. January
1894. . September . . . 50 65% April.
‘-.7_1895. . January ..... 48% 85% MaS'.
1896. . September . . . 53 94% December
1897. . April ........ 64% 1 09 December.
1898' June 65% 185 May.
.The oflicers of ‘the association at the present
trmeare as follows: President, Frank Brainard:
Vice-president, Elliot T. Barrows; secretary,
Frederic H. 'Andrews; treasurer, Edward 0.
Rice. Board of. Managers——To serve one year:
Frederic H. Andrews, Perry P. Williams, Henry
A. McGee, Frank W. Commiskey, James Doyle
and Charles W. Hogan. To serve two years:
John W. Ahles, Herbert Barber, David D. Al-
lerton, Joseph S. Thayer, John Valiant and
Samuel Taylor, jr. Lester B. Howe, superin-
tendent. " . " '
n_..____¢___—__.
NATIONAL PARK BANK.
THE LEADING BANK OF THE COUNTRY IN POINT
on DEPOSITS, RESOURCES AND BUSINESS.
The National Park Bank is one of the most
powerful and. influential financial institutions in
the entire country. It is the leaderin many es-
sential particulars on the American continent.
.It has the largest aggregate deposits, resources
and. business of any. bank on this side of the
water. The offices of the bank are situated at
No. 214 Broadway, where it occupies an impos-
ing building of handsome and massive archi-
tectural.styie and-design. The National Park
Bank’s career has been a part of the growth and
progress of the city for the last half-century.
The charter of the bank dates from 1856, at
which time it openedits offices at Beekman—st.
and Theatre» Alley, on -which site now stands
,Tempie Court. For the first few years it slowly
won the confidence and esteem of the commer-
cial world, and 'with a large capital it naturally
drew a flattering business. The first president
was Reuben W. Hawes-
Eleven years after its incorporation the bank
became a National bank, and in 1866 the direct-
ors purchased the property at No. 214 Broad-
way, and the building :gVas begun whitfi
has ever since been the scene of the important
operations of the institution. From that time on
the growth of the bank was steady and unin-
terrupted, until it has reached its present po-
sition of vast resources and unassailable finan-
cial security. The capital has remained at
$2,000,000 since its incorporation, but in the
mean time there has been added to the re-
sources a surplus of more than $3,000,000. The
connections of the National Park Bank extend
to every part of the globe. Canada, Mexico,
Europe—all have correspondents of the bank;
and for these, as well as hundreds of institul
ticns all over the United States, the bank acts
as a depository in New—York. The daily busi-
ness of the bank requires an office force of 125
men. The huge vaults contain from $10,000,000
to $15,000,000 in currency and specie. -
The officers and Board o_f._Direc-to_rs are as fol-
lows: President, Edward E. Poor; vice-presi<
dents, Richard Delafield and Stuyvesant Fish;
cashier, George S. Hickockrassistant cashier.
Edward J. Baldwin. Directors———Joseph T.
Moore, Stuyvesant Fish, George S. Hart, Charles
Sternbach, Charles Scribner, Edward C. _Hoyt,
Edward E. Poor, W. Rockhill Potts,'Augu'St Beld
mont, Richard Delafield, ~Francis R; Appleto'
John Jacob Astor, George S. Hickock, Geor
Frederick Victor and .Hermann .Oelricha- . .
AA-‘AAA‘A AM“‘ A AAAxw_MM L‘.‘ 4*; KW \'
Norwalk Chronicler