The principal stock exchanges in the Dominion of Canada are those of Montreal and Toronto. Sales on the former exchange for months in the year 1913 amounted to 1,570,258 shares, while the sales of the Toronto Exchange for a period of 11 months in the year 1915 aggregated 592,024 shares.
Not only is the volume of business slight on the markets of most of the large cities in the interior, and the character of the securities almost wholly local, but in such cities so large a part of the total volume of business is transacted over the counter of investment dealers, rather than on the floor of the exchanges, that the latter are reduced to a minor position. There are evidences, however, of an increase in the importance of stock exchanges thruout the country and the volume of stock transactions for 1916, so far as reported is much in excess of the sales of 1915.
4. Services of the smaller general the exchanges outside of New York City deal in local securities. In a sense they serve the New York Stock Exchange somewhat in the same manner as does the curb in trying out new securities. Enterprises which at the outset appear as local in scope expand to na tional proportions and when they do so they gravitate naturally to New York.
It is a fact which in no way minimizes the impor tance of other financial centers, that when investors desire a broad, active, national market, for their se curities, they usually send them to New York. Thus Philadelphia has long since ceased to be the primary market for Pennsylvania, Lehigh Valley and Reading, three railroad stocks in which at various times the Philadelphia market had an important "say." Altho all the directors of the Pennsylvania Railroad live in the state of Pennsylvania and the company is abso lutely ruled from its headquarters in Philadelphia, the only market of any importance for its stock is on the New York Stock Exchange. For a long time Lehigh Valley enjoyed an active market in Philadel phia, but New York was finally able to absorb that also.
5. Boston Stock Exchange.—The Boston Stock Exchange occupies a prominent position because of the fact that Boston has long been the center of a very rich section. New England has supplied capital to the newer parts of the country from the earliest days of the railroad business. In other words, Boston has financed many of the country's largest enterprises, including many of the richest copper and zinc min ing industries. But the New York Stock Exchange
has already absorbed a large number of these compan ies, and is constantly absorbing more and more of them as time goes on.
The Boston Exchange dates from 1834, when it was established as a market for the stock of New England railroads. Among the important stocks in which this exchange deals, and which have been largely financed by New England capital, are American Telephone, American Sugar, American Woolen, General Elec tric, Swift and Company, Fruit and Shoe. The primary market for most of these stocks, however, is now New York.
The Exchange has on its lists at present the stocks of about two hundred different companies, but by far the most active of these are the copper mining shares. In many cases they sell at very high prices, far above their par value. Calumet and Hecla, with a par value of $25, sold up to December, 1917, as high as $580.
The membership of the Boston Stock Exchange is limited to 150. The price of seats has varied from $15,000 to $38,000, but the lower figure is the more normal one. The listing requirements are of the same strict nature as those that prevail generally in the larger exchanges of the country.
Because the rates of commission differ from those on the New York Stock Exchange it may be well to give them in some detail.
Bonds, on the par value of 1 per cent (Govern ment bonds are exempt from the regular rates) ; bank and trust company stocks, 25 cents per share; insur ance, stocks, 25 cents ; textile manufacturing and real estate trust stocks, 1/4 of 1 per cent on the par value (when stocks are selling double their par value, the commission on them is doubled) ; mining stocks sell ing at $300 or above, 25 cents per share; selling be tween $300 and $10, cents; selling between $10 and 99 cents, 61/4 cents; for mining stocks selling be low $1 the rate is $1 per 100 shares or any fraction thereof. All other stocks selling at $300 or over, 25 cents per share; selling between $300 and $5, cents; selling between $5 and $1, 6% cents; and for those selling below $1, the rate is $1 per 100 shares or any fraction thereof. Commissions to members of the exchange are much smaller.