Financial markets are closely linked to railway history ... because these large, terrestrial transportation systems were the first type of business requiring such large amounts of investible private capital. Some early railways were fortunate in that they were bankrolled by the local monarch or government.
However, in almost all cases ... acquiring land, paying contractors for roadbed preparation and tracklaying ... buying track materials, rolling stock, building materials for bridges and wayside buildings, building shops ... required a lot of money up front.
Bonds, secured on the tangible property of the railway ... and shares, sold with the implied hope that the railway would survive, cover its bond obligations and operating expenses ... and someday produce a profit for shareholders ... were two types of securities sold through underwriters. After qualifying for listing at a particular exchange, railway securities were then traded between investors.
In the old days, investors could sometimes be tempted by promises of a regular income immediately ... so railways sometimes got ahead of themselves by selling shares guaranteeing an annual stream of cash payments.
... At any rate, this is my excuse for my 'postcard collection policy' which has resulted in this selection of images showing stock exchange buildings.
The Winnipeg Grain Exchange was a commodity market, but of course its commodities were dependent on railways to get them to domestic or foreign markets. So I was happy to collect those postcards too.
I've arranged these cards from east to west ...
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The central bank was conveniently co-located with the stock exchange.
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The Vancouver Stock Exchange is the building in the centre with the single flag pole. If you look for 475 Howe Street today, you will find some of its ornate walls and windows have been preserved. However, a modern executive hotel exists inside and above those 'hallowed walls' and it trades on the former identity of the exchange building.
... This type of architectural preservation is often called façadism. A developer has reluctantly promised architecture preservationists they will not destroy a historic landmark. In the end, they are granted zoning permission to hollow out the landmark ... which tamps down political opposition to the change.
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Here are a couple of references related to the unique Canadian niche long occupied by the VSE. The OSC is the Ontario Securities Commission (the former provincial regulator) and the TSE is the old identifier for today's TSX.
Computer networks run by sophisticated trading algorithms have replaced the old 'open outcry' floor traders. Except for reasons of symbolism (i.e. Bourse de Montreal, TMX) there is no advantage in maintaining local trading platforms ... or analogue trading floors.
The traditional stock market business has now splintered. Many large institutions with similar interests now trade amongst themselves (and with individual self-directed investors) in private computerized market places. Sadly, high-security server farms don't provide inspiring, distinctive postcard images.
(A street-front business offering food and drink at 811 Pender St, Vancouver - inside the old VSE building - is nostalgically named Open Outcry.)
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| from: Traders, Inside Canada's Stock Markets; Alexander Ross; 1984; Totem. |
... And considering 'fast-buck promoters selling moose-pasture mining stocks' ... an old training textbook shows that a dim view is also taken of such practices across the border when detected by the SEC.
The very early days of the stock exchange in Toronto began with similar minimally-regulated behaviours when selling local northern Ontario mining stocks - which also included sales into the US.
Located in the former 'railway capital of Canada' the Montreal exchange (postcard above) tended to be a little more conservative and staid.
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| from: The Canadian Securities Course; 1990; The Canadian Securities Institute. |
RR (Registered Representative) was the protected term for a person holding a license to sell securities. Today IA (Investment Advisor) is the legally-protected term one would associate with a 'stock broker'.
