Formerly they were issued in series, each of which was distinguished by an alphabetical letter. The last of these lettered series was “L.” This system of series had inconveniences, inasmuch as the regulations under which they were issued prescribed redemption in Bonds of the same series, which interfered with entirely free dealing; some of the earlier series being now only obtainable at a high premium on account of the buyer’s need of them to make up a parcel.
The Securities ring also deals in debenture and other Bonds—National, Provincial and Municipal. The only speculation in which it usually indulges being of the very safest kind; in regard to which, indeed, the term investment would better apply.
The side of the large Hall of the Exchange opposite to that occupied by the Stock and Share rings is now tenanted by the “Bolsa de Cereales,” an institution the recent creation of which was due to the necessity, arising chiefly from the rapid developments of the milling industry, for dealing in “futures” in cereal production.
On the old Once Corn Exchange such dealings were and still are tabu, as savouring dangerously of the Chicago “Pit,” and much heated discussion took place before the new Exchange was at length authorized to register transactions in futures. The discussion was useful inasmuch as it brought about the framing of stringent regulations against the more ruinous forms of gambling in grain. In the result, the new Institution works very well and fulfils its ostensible purpose of assuring the miller against produce being held against him at times when he is under obligation to deliver flour. Thus, it has prevented instead of encouraging at least one vicious class of operations. Formerly, when all dealing in grain futures was illegal, the miller was continually at the mercy of operators in the cereal markets.
The Institution of the new Market was imperatively needed on account of the huge development and value of the milling industry.
For ordinary dealings the Once cereal market still holds its own.
THE BUENOS AIRES STOCK EXCHANGE
One needs some courage to write candidly about this institution, the more especially if one hopes to enter it again.
The building itself is the property of a company from which the members rent it. Part of it is now, as has been indicated, sublet to the members of the new Cereal Exchange.