Stock Market & Economy by jim goulding

There are several different reasons for the crash in 1920-21. If you were to look in-depth into the crash of 1920-21, you'd find dozens of explanations. All of them interconnect in someway. Most of them support whatever theory the author is trying to get across.

The modern day white papers and books I read all had one common element. The computer industry cycle and the auto cycle are very similar. They didn't all agree on the years the cycles began and ended. Or, they differed on this or that. What I wanted was, what was the main economic impact that sent us down?

You must look past the economic theorists to get to this conclusion also. The first inkling I got, that it was about land was actually from a book I read, about ten-years ago, by the John Robbins called “Diet for a New America”. (He’s the 'Baskin-Robins' heir. http://www.foodrevolution.org/market/products1.htm).

In his book he identified what it took to keep the livestock in the US running as an industry. The startling fact was, over 50% of the farming land is needed to feed the livestock. I'm not talking about the place were they roam; I'm talking about the food that needs to be raised to feed them. 50% of all farmland used to grow agri-product are used to feed the animals. This astounded me.

However, the fact I hadn’t looked at was the land that was freed up because of the demise of the Horse. Millions and millions of acres where now open to produce food. In and around 1920, 8,000,000 horses and mules were eliminated and 25,000,000 acres of land was freed. This is directly due to the auto.

Now, let’s add that scenario (the demise of horses as transportation) to the severe export problem the US was having due to the end of WWI and the economy cascaded into a severe, but short lived crisis.

However, there were other problems in the US. Many people think the only reason the US economy hit the skids in 1920 was because WWI ended. What these people are saying is the economy crashed because of the loss of the export business in the US. True. Partially.

Demand at home also dropped in a big way also. Human consumption fell-off here for a variety of reason’s.

I would also add that the invention of the auto had another important effect on farms. That was the increased production of farm equipment because of the advances made in the engine building process and actual manufacturing productivity. (think assembly line)

In 1787, over 95% of the population was involved in producing food supplies for the country. By 1940, it was less than 25%. Between 1850 and 1940 over 30 million people were released from the agri business due to the advancement in farming technology. But it showed it affects severely in 1920-21 because of the advances made in the auto industry. From the quicker building of the equipment and more specifically to the faster movement of food because of trucks.

Trucks were the ‘last mile’ of delivery needed to enhance the productivity of the food chain. There was now a way to get the food from the trains to the stores in highly increased speed and efficiency. This overwhelmed the market with product and agri prices crash, hence land prices crashed.

Furthermore, thanks to our wonderful government, many of the farmers were in debt in a big way. The government encouraged them to buy more and more land from 1914 to 1918. The only way the farmer could afford to buy the land was to borrow. Land prices were going up rapidly at that time because Europe was demanding more and more food, due to WWI. Then, when the US entered the war in 1917, prices went up even further. More people bought at these ridiculous levels. By 1921, the farmers had nowhere to sell their food because of the facts I spoke of earlier.

Big farming businesses came in and bought up huge amounts of foreclosed farms during this period. This is evident from the size of the average farm in the US during this period. In 1920, the average size was 138 acres. By 1940 it was 190 and that was in the south, where there were numerous small cotton farms. If you look at the grain belt the size went from 190 to 258.

The number of farm owners fell drastically also. From 1910-1920 there was an increase of 87,000 farms. 1920-1930 a DECREASE of 159,000 and 1930-1940 another DECREASE of 192,000.

The crisis was not immediately evident after WWI. Europe still imported large amounts of food. This can be seen in the export figures from 1914-1920. They are pretty evenly spread throughout the years: Meat, $143mm to $353mm; Wheat, $88mm to $298mm and Cotton, $537mm to $767mm.

Europe needed these products to rebuild immediately after the war. There was a scarcity of these products in Europe, hence prices went up further after the war concluded. The increase in prices paid for food translated into the farmers in the US getting more money for their product. No one thought it would end. You can almost here them trying to rationalize paying higher and higher prices for land back in the US. “The war ended and Europe is still buying! It wasn’t the war that made the grain prices go up! This will continue forever!”

But the advancements in technology, particularly due to the auto industry set everything in motion. The market for grain products crashed. Land prices with it. But, how did we recover?

By 1922, with the massive decline in internal buying of farm products and exports of agri products a new outlet was needed for the agri products and it was found. This is one factor for the recover, the other being the rise of the auto from 50% US household penetration in 1921 to 90% by 1928.

The new industry that agri products found was the chemical industry. Cereal grain found its way to the textile industry for sizing and finishing. Corn found starch, alcohol, glucose, and wallboard. Soybeans found the auto industry in huge amounts. Also, soybeans went to adhesives, plastics, paint, and varnish. From animal carcass came leather, glue and gelatin, soap, greases, glycerin and fertilizers. Skim milk became a hot item for preparation of wallpaper, paints, glue, and karolith was used in making combs, brushes, and buttons.

Flax found its way to carpets and cotton into the exploding clothing industry. Cotton also began being used in the making of cordage, auto tires, explosives, bags, paper, and stuffing. There’s more, but I think you get the point.

In conclusion, it is obvious that if we look into the 1920-21 crash in-depth a pattern emerges that shows the auto as the main cause of crisis.

Chapter 10

Dow 35,000

Let's get to the good stuff. The Dow Jones Industrial Average (DJIA) will hit 35,000 by late 2008 or early 2009. That's a bold statement. However, there's evidence to support it.

I came across Strauss and Howe (S&H) via an economist, Harry S. Dent, Jr. Dent wrote a book in 1991 called The Great Boom Ahead. In this book he proposed that the DJIA would hit 10,000 by 1999. The critics laughed.

The DJIA hit 10,000 on March 16th, 1999. They aren't laughing anymore. Dent went on to write another book called The Roaring 2000s. In this book he forecasts that the DJIA will hit 35,000 by 2008-09.

He bases his theories on two basic ideas. First, invention cycles. Second, the consumer. In the invention side of his theory, he states that we are currently on a 500-year cycle (the printing press, 500 years ago) and an 80-year cycle (the auto, 80 years ago). In modern times, the transistor is the 500-year cycle (1947) and the Computer (1981) is the 80-year cycle.

What's important to point out is that the computer is on course to reach 90% U.S. household penetration in 2008. The 90% penetration level is never a good thing for the economy. The last major invention to do this was the auto. It reached 90% in 1928.

The consumer is the other side of Dent's equation. He simply states that the average person predictably spends money over the course of their life span. They spend more money up until their 46th birthday (46.5, to be exact); then, their spending declines for the rest of their natural life. You can chart this spending pattern by projecting the birth rate ahead by 46.5 years. (This theory can be used for numerous other economic interests, including housing.)

If we use the Boomers as an example, Dent says it's pretty easy to project how the economy is going to move by taking the yearly birth rate, minus deaths, plus immigration and lag it forward. Then, he lays this chart over a chart of the DJIA, and it matches. [i] It's quite amazing. However, you can't just take the any old generation and do this. If you want the chart to match the DOW, it must be an Idealist generation.

All four archetypes play a role in the consumer cycle and the invention cycle. I'm not going to go into great detail about Dent's theories. They are so simple it's scary. Buy his book. It only takes two days to go through it.

Earlier, I mentioned the computer will hit that economically devastating 90% U.S. household penetration rate in 2008. The computer is not the only mass-consumer device that will hit that rate in 2008. The Internet, cell phones, and broadband hit 90% at the same time. When all these devices hit 90% U.S. household penetration rate, we can expect the Great Devaluation will be just around the corner--probably in October, 2009. If you line up the economic, generational, and invention cycles from 1901 with today's current cycle, the result is an economic crash.

The 1901 v. 1981 cycle is extremely similar. Looking at the stock market we have the 1987 v. 1907 crash, and the 1920-21 crash v. the 2000-01 crash (for simplicity I'll be using 1920 for the 1920-21 crash and 2000 for the 2000-01 crash). The 1920 and the 2000 crash are so similar it's scary.

Both crashes were about technology. The crash in 1920 was about the auto industry and the crash in 2000 was about the computer industry. The S&P Tire & Rubber Index (SPRTI) and the S&P Auto Index (SPAI) from 1920 can be compared with today's Nasdaq (ND). The ND is the index for today's current technology companies.

If we look at October, 1919 to April, 1922, the SPAI lost 70% of its value. [ii] Furthermore, from June, 1919 to about January, 1922, the SPRTI lost 72% of its value. [iii] Shoot forward 80 years. The ND lost over 80% of its value from its high, in 2000, to its low, in 2002.

What about individual companies? In about the same time frame, General Motors lost 75% of its value. [iv] Flash forward again to 2000: Microsoft hit a weekly high of $117.37 in January, 2000. It bottomed in October, 2002 at $43.81. That's a 63% loss of value.

To continue the similarities between eras, let's take a look at the 50% U.S. household penetration rate. The Internet hit 50% U.S. household penetration in late 2001[v] and the Auto hit 50% U.S. household penetration in 1921.[vi] The Computer hit 50% penetration in 1999.[vii]

In conclusion, we see that the auto and computer cycles of 1901-1929 and 1981-2009 are very similar in nature.

What about the generational cycles? Below is a comparison of generations and their respective archetypes then and now.

Births

Ages of archetypes alive in 1901

Ages of archetypes alive in 1981

References:

The Euro Currency

Chapter 13

The Euro

In an essay I wrote, titled "Inventions Cycles and Generational Theory", I present a little bit different scenario about the Winter era. It involves the Euro currency.[1]

The Euro currency can bring the United States and the almighty U.S. Dollar to it’s knee’s, overnight; with that, the U.S. economy. All that it would take is a conversion of the U.S. Dollar to the Euro for oil payments by a few countries like Russia and Saudi Arabia, or the European Union itself. What about China?

Let’s take a quick look at what some countries have been up to in regards to the Euro currency.

China: They switched a portion of their reserves in Euros in 2002. They won’t risk completely switching to the Euro because of the trade gap they enjoy with the U.S. However, America is committing moronic Foreign policy errors lately, and one of the reasons China switched, some of their reserves into Euros, was due to ‘suspicion of American "hegemony"‘.[2]

Venezuela: If you’d like to know when the U.S. and Hugo Chavez are arguing, look for Chavez to threaten to ‘switch to the Euro’ as he did in June of 2003.[3]

Russia: “One of five countries still targeted by the U.S. Government nuclear arsenal—and as reported recently in the Wall Street Journal, Russia’s planning to cut its dollar foreign reserves to 50% from the previous 70%. Russia has also announced plans with Germany to open a euro denominated oil futures market.”[4]

A question begs to be answered, Has a country with major oil reserves switched from the Dollar to the Euro for payment of oil yet? Yes.

Iraq: They switched in late 2000.[5] Instead of launching into a diatribe on the Iraq issue, I’ll just encourage you to read more about this subject on the Internet.

Iran: They began talking about switching in late 2002.[6] This was after the U.S. began speaking about Iran’s nuclear program.

Other countries around the globe know that the Euro is the only weapon the have left against a U.S. Government that’s out of control.

Of all the countries I’ve written about so far, it must be stated that they pale in comparison to the Saudis. If they switched, kiss the modern world goodbye.

Saudi Arabia, began talking about the switch, again, in April 2002.[7] The Saudis, hold between $750 billion and $1.2 trillion in U.S. assets outside the U.S., in U.S. dollar denominations.[8] They hold $1 trillion in U.S. denominated assets, inside the U.S. banking system.[9]

The Saudi’s can move the American economy at will. They removed over $200 billion in August, 2002, from the U.S. banking system[10], in retaliation for the $1 trillion lawsuit filed by some of the 9/11 victims families. The consequence? The U.S. dollar fell below 100 for the first time since late 1999. That’s after the dollar, already plunged from 120, in January, 2002.[11]

What’s your reaction after reading about the possible Euro switch? Maybe you don’t understand currency movements. Even though I’m a trader, I’ve always struggled with the currency concept. Currency screws with my head. So don’t believe that this is rocket science. It’s not. The only thing you have to know is that if the Saudi’s switch, we are toast. (Again, I encourage you to read about this issue. See my footnotes or the back of this book for further reading suggestions.)

Lastly, regarding the Saudis, I wanted to mention the House of Saud. Just in case you think that there’s no way this could happen, I really want to encourage you to read up on the current condition of the House of Saud. Do an advanced Google search on “House of Saud”. Limit your search to “.gov., or, .edu.”, and see what you find.

Basically, the House of Saud is the royal Saudi family. The Royal family is waiting for King Fahd to die. King Fahd, ‘suffered a near fatal stroke, in 1995.’[12] When he dies, all hell is going to break loose. The Euro switch will be number one on the agenda. If you’d like to know one of the ways we may enter Winter , watch the House of Saud.

North Korea: “CNN reported last year that, in light of political tensions with the United States, North Korea ended dollar-denominated trade on Dec. 1, 2002.”[13] This is not a big blow to us, it’s just an example of the power of the Euro currency. A currency that will very likely have a role in the Millennial Crisis .

[1] “Invention Cycles and Generational Theory”, by Jim Goulding, http://www.jamesgoulding.com/SA_s.html.

NYSE Origins

"The New York Stock Exchange dates its informal Origin from 1792, but was not formally organized and housed until

1817. Government bonds, stocks of the United States banks, and state sponsored international improvement projects

were the principal securities traded: the first railroad stock to appear on the exchange was that of Mohawk and Hudson

Railroad in 1830, and the first industrial shares were of the New York Gas and light Company in 1831. By 1857 as many

as 70,000 shares were traded on a record day. The stock exchanges encouraged security investment and thereby capital

formation by making it easy for a person to turn his investments into cash on short notice" [1]

[1] Economic History of the American People, by Bogart and Kemmerer, 1942 Van Rees Press.

Designated Contract Markets (DCMs)

Exchange	Date Designated* (original designation date)	Major Commodities	Remarks
CBOE Futures Exchange, LLC (CFE)	08/07/2003	Volatility Indexes	CFE is a subsidiary of the Chicago Board Options Exchange (CBOE). [CFTC approval documents]
Chicago Board of Trade (CBOT)	12/21/2000* (5/3/1923)	Grains, soybeans, US Treasury notes and bonds, other interest rates, and stock indexes.	Organized as a grain cash market in 1848, the CBOT is generally considered to be the oldest organized futures exchange. While experts disagree about the exact date when “true” futures trading began, CBOT cash contracts evolved into what are now considered futures contracts. Shortly before the civil war, traders at the CBOT began trading “to-arrive” or forward contracts in agricultural commodities including wheat, corn, and oats. In 1859, the CBOT was granted a charter by the Illinois legislature which, among other things, standardized grades and provided for inspectors of grain to be appointed by the CBOT, whose decisions were binding on members. In 1865, formal trading rules were instituted particularly concerning margin and delivery procedures. In 1877 the CBOT began publishing futures prices, and in 1883 the first clearing organization was established to clear CBOT contracts, initially on a voluntary basis.
Chicago Climate Futures Exchange, LLC (CCFE)	11/09/04	Emission allowances	CCFE is wholly owned by Chicago Climate Exchange Inc. (CCX). CCX previously filed a notice with the Commission to operate as an exempt commercial market [ CFTC Approval Documents, Exchange Filings & Comments]
Chicago Mercantile Exchange (CME)	12/21/2000* (9/13/1936)	Livestock, dairy products, stock indexes, Eurodollars and other interest rates, currencies	CME was originally known as the Chicago Butter and Egg Board, which was formed in 1898. It became the CME in 1919, trading futures on a variety of agricultural products.
HedgeStreet, Inc.	02/18/2004	Economic Indexes	HedgeStreet plans to provide for the automated trading of binary option contracts. [CFTC Approval Documents, Exchange Filings & Comments]
INET Futures Exchange, LLC (IFX)	02/19/2002	Security futures products	IFX originally was designated as Island Futures Exchange. It changed its name to IFX on December 5, 2003. It has not yet commenced trading. [CFTC approval documents]
Kansas City Board of Trade (KCBT)	12/21/2000* (5/5/1923)	Wheat, natural gas, and stock indexes	KCBT was established by local Kansas City merchants in 1869 as a means of trading grain. Futures trading in grains began in 1876.
Minneapolis Grain Exchange (MGE)	12/21/2000* (5/2/1923)	Spring wheat	MGE was established by the Minneapolis Chamber of Commerce in 1881 as an organization designed to promote trade in grains and to prevent abuses. In 1947, it became the MGE.
NQLX LLC Futures Exchange (NQLX)	08/22/2001	Security futures products	NQLX originally was designated as the Nasdaq LIFFE LLC Futures Exchange, and it operated as a joint venture of the Nasdaq Stock Market and the London International Financial Futures and Options Exchange (LIFFE). NQLX’s relationship with Nasdaq ended on July 24, 2003, and it was renamed as NQLX. [CFTC approval documents]
New York Board of Trade (NYBOT)	06/10/2004	Coffee, sugar, cocoa, cotton, frozen concentrated orange juice, currencies.	NYBOT was formed in 1998 when the Coffee, Sugar and Cocoa Exchange (CSCE) and the New York Cotton Exchange (NYCE) entered into a merger agreement, which was to occur in several stages. In June 2004 when the merger was completed, the CSCE’s and NYCE’s contract market designations were extinguished and transferred to NYBOT [Staff Memorandum].
New York Mercantile Exchange (NYMEX)	12/21/2000* (6/15/1936)	Energy products	NYMEX was founded in 1872 as the Butter and Cheese Exchange of New York and became the New York Mercantile Exchange in 1882. COMEX was founded in 1933 from the merger of the National Metal Exchange, the Rubber Exchange of New York, the National Raw Silk Exchange, and the New York Hide Exchange (the oldest of these exchanges was founded in 1882). Since 1994, COMEX has operated as a subsidiary of NYMEX.
The COMEX Division (COMEX)	12/21/2000* (6/18/1968)	Metals
OneChicago	06/11/2002	Security futures products	OneChicago is owned by the CME, CBOT and the Chicago Board Options Exchange (CBOE). [CFTC approval letter and supporting materials]
Philadelphia Board of Trade (PBOT)	12/21/2000* (5/18/1985)	Currencies	The PBOT is a subsidiary of the Philadelphia Stock Exchange.
U.S. Futures Exchange, LLC (Eurex US)	02/04/2004	US Treasury Notes and Bonds	Eurex US is owned 80% by U.S. Exchange Holdings, Inc., a Delaware corporation that is a separately capitalized wholly-owned subsidiary of Eurex Frankfurt, AG, and 20% by Exchange Place Holdings, L.P., a Delaware limited partnership. [CFTC Approval Documents, Exchange Filings & Comments]

*Section 5(c) of the Commodity Exchange Act as amended by the Commodity Futures Modernization Act of 2000 (CFMA), provides that boards of trade that were designated contract markets on the date of the enactment of the CFMA (December 21, 2000) were to be considered designated contract markets under the Commodity Exchange Act as of that date. The contract markets having a designation date followed by an asterisk are those that were deemed to be designated at the time of adoption of the CFMA. . The original date when an exchange was designated as a contract market by the CFTC or, prior to 1975, by the Secretary of Agriculture is indicated in parentheses.

Source: http://www.cftc.gov/dea/deadcms_table.htm

________________________

Boards of Trade Designated as Contract Markets (DCMs), but Deemed to be Dormant

The following exchanges have been designated by the CFTC as contract markets under the Commodity Exchange Act, but were deemed to be dormant as no trading had occurred on these exchanges for a period greater than six months. Under Commission Regulation 40.1, any contract market on which no trading has occurred for over a period of six months is defined as a dormant contract market. Newly designated contract markets, however, are not considered to be dormant until the end of a grace period of 36 complete calendar months following the day that the order of designation was issued or that the contract market was deemed to be designated. Section 5(c) of the Commodity Exchange Act as amended by the Commodity Futures Modernization Act of 2000 (CFMA), provides that boards of trade that were designated as contract markets on the date of the enactment of the CFMA (December 21, 2000) were to be considered as designated contract markets as of that date. Accordingly, the 36-month grace period ended for those contract markets on December 31, 2003. The contract markets having a designation date followed by an asterisk are those that were deemed to be designated under the CFMA.

Prior to listing or relisting products for trading, a dormant contract market must reinstate its designation. To be reinstated, a dormant contract market would submit an application for reinstatement under the procedures found in Commission Regulation 38.3(a)(1), although the application might rely on previously submitted materials that still pertain to, and accurately describe, contract market conditions.

Exchange	Date Designated (original designation date)	Year Established	Date Deemed Dormant	Remarks
AMEX Commodities Corporation (ACC)	12/21/2000* (02/15/1985)	1985	12/31/2003	Trading ceased on the ACC in 1986.
Cantor Financial Futures Exchange (CX)	12/21/2000* (09/04/1998)	1998	12/31/2003	The CX is a joint venture of the NYBOT and Cantor Fitzgerald & Co. CX provides a proprietary electronic trading platform.
Exchange Place Futures Exchange, LLC	06/18/2001	2001	04/30/04	Exchange Place Futures Exchange, LLC originally was designated as BrokerTec Futures Exchange (BTEX). BTEX ceased operations in November 2003. As of January 30, 2004, Exchange Place Futures is wholly owned by U.S. Futures Exchange LLC (USFE). [CFTC approval documents]
FutureCom (FCOM)	12/21/2000* (03/13/2000)	N.A.	12/31/2003	FCOM was designated as a contract market subject to specific conditions preventing the exchange from trading until the conditions were satisfied. The specific designation conditions are set forth in the CFTC’s approval letter and Order. FCOM never commenced trading, as the conditions placed on its designation were not met prior to the exchange becoming dormant. FCOM’s business plan is to be an internet based, electronic exchange.
Merchants' Exchange (ME)	12/21/2000* (7/10/2000)	2000	09/30/04	ME was originally established in 1836 as a cash commodity market known as the Merchants' Exchange of St. Louis. It was designated as a contract market by the Secretary of Agriculture twice. ME was first designated as a contract market on May 12, 1923. That designation was vacated on August 31, 1957. ME was designated again on April 13, 1962, and it appears that that designation was vacated in 1974. In 2000, the ME was designated as a contract market by the CFTC under the name Merchants' Exchange of St. Louis, operating as an electronic exchange. It changed its name to ME in January 2002.
New York Futures Exchange (NYFE)	12/21/2000* (5/28/1980)	1980	01/31/04	NYFE originally was established as a subsidiary of the New York Stock Exchange. It was sold to the NYCE in 1994. All NYFE contracts were transferred to the NYCE on August 1, 2003 and then to the NYBOT on June 10, 2004.
OnExchange Board of Trade (ONXBOT)	12/22/2000	2000	12/31/2003	ONXBOT never commenced trading. Its business plan is to be an internet based electronic exchange.
Pacific Futures Exchange (PFE)	12/21/2000* (07/22/1986)	1986	12/31/2003	The PFE never commenced trading. The only authorized contract is the PSE Technology Stock Index future.
Twin Cities Board of Trade (TCBT)	12/21/2000* (02/26/1991)	1991	12/31/2003	The TCBT never commenced trading. The only authorized contract is the British Pound/Deutsche Mark Cross Rate future.

Background Information on Designated Contract Markets

Source: http://www.cftc.gov/dea/deadcms_table.htm

_______________________

Boards of Trade Whose Designation as a Contract Market
Has Been Vacated or Otherwise Revoked

The following exchanges previously were designated by the CFTC or, prior to 1975, by the Secretary of Agriculture, as contract markets under the Commodity Exchange Act. Subsequently, these designations were either vacated at the request of the exchange, pursuant to the provisions of section 7 of the CEA, or were otherwise revoked. Once the designation of an exchange is vacated, the exchange must reapply to the CFTC for contract market designation prior to listing contracts for trading.

Exchange	Date Designation Was Vacated or Revoked	Date Designated ** (original designation date)	Remarks
American Commodity Exchange (ACE)	7/3/1981	8/22/1978	ACE was founded in 1978 and traded futures on GNMA certificates and US Treasury instruments. The last futures trades were in July 1981. The exchange closed in 1981 under an agreement whereby ACE members were offered membership in the New York Futures Exchange (NYFE).
Baltimore Chamber of Commerce	8/18/1936	8/15/1923	No futures contracts are known to have been traded on the Baltimore Chamber of Commerce after designation.
Chicago Rice and Cotton Exchange (CRCE)	11/8/1991	2/12/1981	Originally designated as the New Orleans Commodity Exchange in 1981. The exchange moved to Chicago in 1983 and became the Chicago Rice and Cotton Exchange. The CRCE was subsequently acquired by the MidAmerica Commodity Exchange, which in turn was acquired by the Chicago Board of Trade in 1986. In 1991, the CRCE designation was vacated and its rough rice contract was transferred to the MidAm.
Coffee, Sugar & Cocoa Exchange (CSCE)	6/9/2004	12/21/2000** (7/18/1975)	The CSCE was the product of a 1979 merger between the New York Coffee and Sugar Exchange (founded in 1882) and the New York Cocoa Exchange (founded in 1925). In 1998, the CSCE and New York Cotton Exchange (NYCE) entered into a merger agreement to form the New York Board of Trade (NYBOT), which was to occur in several stages. On June 10, 2004 when the merger was completed, the CSCE’s and NYCE’s contract market designations were extinguished and transferred to NYBOT [Staff Memorandum].
Duluth Board of Trade	3/15/1972	5/11/1923	The Duluth Board of Trade, located in Duluth, MN, was founded in 1881. The last futures trade was in 1946.
Hutchinson Board of Trade Association	10/26/1936	3/16/1932	The exchange operated as a wheat market in Hutchinson, Kansas.
International Commercial Exchange	4/21/1975***	4/9/1971	Founded in 1970, and located in New York, it was the first exchange to trade currency futures, beginning on April 23, 1970, two years before the CME. It ceased operations in 1973 and former International Commercial Exchange traders were granted certain trading privileges on NYMEX.
Los Angeles Grain Exchange	5/1/1953	10/24/1922	The Los Angeles Grain Exchange traded futures contracts in corn, barley and grain sorghums. The last trade occurred in December 1945.
Memphis Board of Trade	4/21/1975***	12/8/1940	Founded in 1885 as the Memphis Merchants Exchange, it was the first exchange to trade soybean meal, beginning in 1940, 11 years before the CBOT. It became the Memphis Board of Trade in 1954 and the last futures trade occurred in 1964.
MidAmerica Commodity Exchange (MidAm)	5/1/2004	12/21/2000** 10/24/1922)	MidAm was founded as the Chicago Open Board of Trade, probably in the late 1870s. From the beginning, it specialized in smaller contract size versions of Chicago Board of Trade (CBOT ) contracts. It was originally designated in 1922 following passage of the Grain Futures Act which required grain exchanges to be designated as contract markets. It became the MidAmerica Commodity Exchange in 1972. MidAm became a subsidiary of the CBOT in 1986. Trading on the MidAm ceased in April 2003, and it was dissolved as a legal entity on July 3, 2003. In January 2004, the CBOT requested that the CFTC vacate the MidAm’s contract market designation [Staff Memorandum]
Milwaukee Grain Exchange	4/21/1975***	10/24/1922	Originally designated as the Milwaukee Chamber of Commerce. Futures trading was suspended in 1966.
New Orleans Cotton Exchange	4/21/1975***	9/13/1936	Founded in 1871 as the New Orleans Cotton Exchange, it was first designated in 1936. The last futures trade occurred in 1964. In 1981, another entity called the New Orleans Cotton Exchange was designated as a contract market (see Chicago Rice and Cotton Exchange above).

The Stock Market & Economy

Crash of 1920-21 v 2001