Business & Finance: Exchange Seats

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    Exchange History. The Stock Exchange was formed in 1792 when 24 brokers gathered under a buttonwood tree, not far from the present Exchange site, and agreed on methods of trading. In 1817 the Exchange acquired a charter; it also moved indoors to a trading room at No. 40 Wall St. It was not until 1868 that seats were considered valuable enough to sell; 1868-69 prices ranged from $3,000 to $7,500. In 1869 the 533 Stock Exchange members joined with 173 Government Bond Department Members and with 354 members of the Open Board of Brokers, formed a Stock Exchange with 1,060 members. In 1879 the Exchange needed money to buy additional real estate, sold 40 seats. Since this sale the membership has not increased, members in 1925 voting down a 25-member increase because they felt that the value of their own seats would be impaired by the arrival of newcomers.

    Almost every week in the last few months has seen a new high record for a seat purchase. From its $3,000 valuation in 1868, a seat rose to $16,000 in 1879, to $34,000 in 1885. Then came a 15-year slump with seats quoted at around $20,000. In 1899 the bull movement in seats resumed, during 1901 the price reached $80,000. But not until 1919 did a seat sell for $100,000 and even in 1925 there was a $99,000 sale. There are at present 25 members who purchased seats before 1890. Two who have seen their seats increase vastly in value are William B. Wadsworth (seat purchased May 3, 1869) and Mitchell C. Bouvier (seat purchased June 25, 1869). Their seats are worth more than 100 times the purchase price.

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