• Sep
  • 01
  • 2009
  • 10:52 AM

How Early Dutch Finance Played a Role in the Founding of America

By: Ray Pellecchia
File Under: NYSE Euronext

Here's a neat-sounding event that NYSE Euronext is sponsoring next week at the Museum of American Finance. From the museum's Web site:

Thursday, September 10, 2009
05:30 PM to 07:00 PM
MUSEUM OF AMERICAN FINANCE
48 Wall Street
New York, NY 10005
Tel: 212.908.4110
Fax: 212.908.4601

Please join us on Thursday, September 10, for a reception to open “Actien Handel: Early Dutch Finance and the Founding of America,” an exhibit showcasing the relationship between early Dutch finance and the United States. On display will be financial documents from Amsterdam, including the oldest known share certificate, which was issued by the Dutch East India Company in 1606.

The exhibit will tie in with the city-wide celebration of the 400th anniversary of Henry Hudson’s exploration of the area that became New Amsterdam (and later New York), and will focus on the financial aspects of the area’s first 200 years. The exhibit is a collaboration among the Museum of American Finance, NYSE Euronext, Amsterdam City Archives and the Dutch Exchange Heritage Foundation (Stichting VvdE), and features exceptional documents from these organizations. In addition to the oldest share certificate (which was featured in the 2004 motion picture “Ocean’s Twelve”), the exhibit will include documents relating to early Dutch share trading, the bubbles of 1720, and John Adams’ successful bid to secure a loan from Dutch bankers on behalf of the Continental Congress, which was the first ever U.S. state loan.

“Actien Handel” is sponsored by NYSE Euronext and Stichting VvdE within the framework of Capital Amsterdam and will be on display through October 17, 2009.

This event is FREE and open to the public. For information, please contact Lindsay Seeger at 212-908-4110.

To register, there's a button at the link above.

I've only seen reproductions of that first stock certificate; would be cool to see the real thing that started this all. I think I remember Bart Ward telling me he had seen it during a visit to Amsterdam.

In fact, I can't think of a better time to be reminded of the importance of financial markets in the growth and prosperity of nations. Maybe I'll see you there!


Comments

Ray, that’s right, I had a peek at the Dutch VOC cert. (http://www.oldest-share.com) at the then Amsterdam Stock Exchange (now Euronext, Amsterdam). Some say the cert. is more like a bond with its repayment schedule on the back. Cherelt Kroeze, Manager Central Archives & Company Historian in Amsterdam gave me a tour of their archives.

According to Kroeze, “In 1602 the Dutch East India Company (VOC) became the first company in the world to go public. As the birthplace of global share trading, the Netherlands quickly recognized the need for regulatory measures. The first were introduced as early as 1610 in an attempt to curb price manipulation and wild speculation, unsuccessfully as it turned out.” The Dutch tulip mania followed in 1636.

As a side note, Euronext Amsterdam claims it is the oldest continuing stock exchange in the world. Those in Belgium will remind us that the first stock exchange was in Brugge (Bruges), Belgium at the house of Van der Burse (the word Bourse is derived from this family name). By 1309 this meeting place was institutionalized into the "Bruges Bourse."

Ray, as you know, by 1790, New York’s merchant class was primarily British and Dutch. They were merchant traders in the primary commodities including furs, natural resources, and tobacco. While some Dutch did speculate in land, they were really not settlers like the British and thus the sale of Manhattan some say. At that time, trading was done at a number of places, but the Tontine Coffee House (http://www.aaronburrassociation.org/tontine.htm) at the corner of Wall & Water became famous.

This will be a good event at the Museum. Go if you can. Hats off to 48 Wall!

Regards,

Bart J. Ward

by Bart Ward on September 1, 2009 1:51 PM

Ray, I am posting this here in the hope that the NYSE gets in front of this critical issue. The AFL-CIO & some Dems are pushing a "Wall Street Tax" again and if passed it would TOTALLY destroy trading across the board. I cant imagine what can be going through their minds but this Tax will eventually be passed down to ALL investors in our capital markets resulting in much higher stock transaction cost's for everyone. Thanks.

by tony dey on September 1, 2009 6:25 PM

This trade tax talks about raising tax dollars for the govt but what about the amount of income tax they would lose from traders and brokerage houses and countless other people that whold be put out of business from this rediculous tax.

by josh on September 2, 2009 2:40 PM

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