ABSTRACT
The early entrants to the Liverpool and Manchester Stock Exchanges were able to gain admission by writing to the secretary and provided the applicant was recommended by two members, a ballot was then arranged. If they were successful in the ballot applicants paid an entrance fee and signed the rules and regulations. All applicants were not however admitted immediately since the ballot might go against them, and Liverpool in 1841 specified that "any candidate who shall be henceforth blackballed shall not be eligible for Ballot within four months after such rejection".l Also, in 1841. Liverpool required new members to "enter into a Bond with Two Sureties (being members of the Association) to the Trustees. or deposit security to abide by the rules". The security to be given was as follows: "In the case of a single member the sureties shall be Two members of the Association, in the sum of £250 each: or he shall deposit the sum of £500 in cash, or approved Railway or other stock in the hands and in the names of the Trustees: and in the case of a firm the sureties shall be three members, in the sum of £1,000 in equal proportion, or such firm shall deposit the sum of £1,000 in cash or stock. The Bond shall continue in full force, or the security continue deposited with the Trustees for three years".2 The most likely reason for its introduction was a desire to protect existing members against defaulters among the ranks of the many inexperienced newer entrants to the profession. Up to that date neither Liverpool nor Manchester had experienced any substantial failures. Manchester however did not introduce somewhat similar surety requirements until 1845.3
The provincial markets set up in 1844 and after followed suit with regard to surety requirements. Birmingham in 1846 required two sureties of £150 for a period of two years, but they also had the novel provision that if the loss from the default of a member was in excess of £300 a further maximum of £300 could be raised by a rateable contribution on the other members:' Bristol from 1845 required two sureties of £300 for two years, while Leeds fixed the sum at £600 for two years from the mover and the seconder of the applicant, but it only covered the member's "transactions on the
Exchange" and a firm was required to give surety to the sum of £1,000.5 Many of the smaller exchanges did not impose any surety requirement and usually contented themselves with the verbal assurances of an applicant's recommenders.
