Thursday, July 15, 2010
A link to the history of the Honolulu Stock Exchange
by Larry Geller
David Baeckelandt.left a comment on my post There was a Honolulu Stock Exchange? pointing to his blog Hawaiian Financial Art. David’s article there is a well-written short history of the Honolulu Stock Exchange.
It’s fascinating. Go there and check it out.
Yes, Virginia, there was a Honolulu Stock Exchange. David’s material is an important contribution to Hawaii’s disappearing history.
Here’s a snippet:
The capital that was raised on the Honolulu Stock Exchange was channeled toward the fast-growing industries like transportation companies, communications companies, and sugar companies. Naturally the need for locally-trained and domiciled financial analysts grew in lockstep with the expansion of the Honolulu Stock Exchange. Importantly, both capital and companies were a blend of East and West. Capital flowed from and to both directions with Honolulu as the terminal point. Thus capital was raised in Honolulu for Japanese multinationals, Indonesian plantations and Philipino electric plant securities at the same time that capital was invested in mainland companies. At the same time, capital flowed in from all across the Pacific Rim for Australian transplanted distilleries, Japanese transplanted department stores, and the latest technology transplants from California.
David’s history begins in 1812. Yes, 1812.
There seems to have been two stock exchanges, the first opening on July 20th, 1893 but followed by a more successful exchange in 1898. So next week will be the 117th anniversary of the first one.
It’s a fascinating history. Thanks, David!
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