THE MELBOURNE STOCK EXCHANGE.

Ashburton Guardian, Volume VII, Issue 1810, 9 April 1888, Page 3

THE MELBOURNE STOCK EXCHANGE.

HOW BUSINESS IS DONE

Great interest has very naturally been tnkoa m tho proceedings of the Mol'ouurne ytcck Exchange, the mambasrs of which control to a vory large extent the va'uea of raining stock. Let us attend one of tho meetings of the Exchange, And ccc hew its business 1b conducted. Passing through the crowded vestibule and spacioua reading-ror-m, we corns to the i-.'xcbfti;gG-room. Uiidec erdinary circumstances, there is no ''open sesame" to ! that chamber. The double doors are kept otrlc'ly closed against strangers. But the kindly offices of the chairman (Me F. W. Howard) secure for ua the unusual privilege, aud we take oar Beats witblu the mysterious precinota, It is a well-Ht room, of about 30 feet equare. There is uo attempt at embellishment, , and the only decora* ions on the plastered walls are numerous lithographed plans of mineral fields, and framed copies of tho rales and regulations by which the Exchange is governed.. By these tatter vre are told that " tha objects of the ■ association are tho exchange of quotations, the facilitating of purchases and sales, and the maintenance of honorable dealing amongst its members;" also, that its management is vested m a committee of saven members. The furniture of the room is plain, but unique. On a small platform at one end are three deßke — one for the chairman, one on hie right for the reader, and another on hia ltft tor the tecretary. Around the room are ranged numerous other deske, each of which m occupied by a member throughout the proceedings The Exchange meets twice a day, and m the morning the bußineßS commences at a quarter-past ten o'clock. Punctually to the minute ihe brokers troop into the chamber, and soon every available seat is occupied. Toere are over 80 members altogether, and they have reason to set some value on their membership When the Exchange was founded many years ago. the entrance fee was fixed at £00. and this was increased from time to time. For some time the number of members was limited to 75, but it wps recently agreed to allow it to bo extended to 100, and the entrance fee was fixed at £1000. Two seats m the Exchac^e were sold not long ago for £850 aad £930 respectively. After the entrance fee ia paid the tubscription is not excejBive ; but vow mombers are admitted only by ballot, aad one black ball out oil five will exclude. No tiiuo is lodt m getting to buniuosa. Each member ia supplied with an official list of the etc ck« dealt m, with ruled columns for tho daily quotations Government and municipal debentures are taken first, the reader calling out each stock m fcUcce?BioD, aad' tho secretary recording the buying and selliag prices and the sales elected. "Banks, gas companies, Insurance companies, building societies, breweries, and miscellaneous investments are dlsp< sed of m rapid succession, and at 25 minutes to 11 the reader begins upon the mining atooke, commencing with Victorian gold mines. There Is more movement here, and many transactions are recorded, but interest centres m silver stock?, and theße come next. We are told that things are not ao brisk as they were a few daja before, but an ast.«nißhing large business In done, and stocks change hands with bewildering rapldiiy There is no time for hesitation. Each man must come with a clear idea of what ho and hia cllentß want— how much he is procured to give for this stock, how much to accept Cor the other. TII9 procedure la simplicity itself. "El Dorado," shouts the teader. " I have 100 at 10j 6d," says one. "Right you are," comes from Bozneone else. ' • Brown to Robineon, 100 at 10s 6d A " and down goes the transaction, "Cosmopolitans" may be the next, "Fifty wanted at 13a 6V' " I have 100 at 13a 6d," " I'll take ihem." " Roblnaon to Jones, 100 at 133 6i" — the eecretary records It. Somatimea a soore of transactions will he effected In a single stook. Each man's word is his bond, aud once a transaction Is properly recorded there is no going back, /ill scrip, or vouchers for it are usually delivered within an liour of the rising of tho Exchange, and m all cases the cheques must be forthcoming boforo U.o banks close m the afternoon. During the last fortnight singlo firms or' brokers have paid £30,000, £40,000, and £50,000 m a siaglo day. Ono ■•■of. tlv.) biggest singlo transactions effected on tho c'xohango was made a few days ago. wliea a broker bought Scrip m ono mine to the amount of over £25 000. Sometimes two members will, bid simultaneously, m which case the [ chairman is referee. If ho is m doubt, ho puts it to the room. "Those who thought Mr Brown had it ?" ' * Tnose who thought Mr Smith had it?' " I'.'s youra, Mr Smith." And against this decision there is no appeal. Kvery member is under a bond that no matter what happens to him or what disputo may arLe ho will " raise uo action m equity or at law against any member or members oc tho Exchange." Though thousands of pounds aio Qhanging hands every few minutes, thore is little apparent excitement^ Tho business is carried on with much good humor, but tho lvcoipt of a continual stream i of telegrams shows the extont of I tho operations, and it i 3 evident that tho game ig bslng keenly followed. No rofreßlimonte of any kind are to bo aeon m the room, if we excapt a couple of tumblers of •'• lemon squash" with which tha reader and secretary ara glad to moisten tholr vocal chords. Looking round the room, it is impossible to discover any distinctive type of atylo or feature In the Melbourne stockbroker. If 80 men were drafted m at random from Collins street, there could not be graatar diversity cf physiognomy and phrouologioal characteristics. It yoen without saying that aa a body they are a talerablo smart sat of men. At longth close upon midday, tho long shares liflt comes to an o.\»d, and tha socrntary ca'.L O7or tho register of rialesj No sooijes 1 Id tho htat word out of hia mouth th;'.u tho brokers epdng from their dopka with tho impetuosity of aohoolboyi?, and rush out into the veßtlbuleand Btreut, .hera their cHeuts are wailing to interview thorn, end smaller deale.-a aro anxiouijiy looking for tho latest " "&3 to closing prfcoa. — " Australasian,"