Showing posts with label office. Show all posts
Showing posts with label office. Show all posts

Wednesday, May 24, 2023

HSK presents American scripophily, bonds and shares from Northern Germany and the H-W Schmidt collection of German banking securities

Hanseatisches SammlerKontor für Historische Wertpapiere (HSK) plans its next auction of stocks and bonds on June 3, 2023 at its headquarters in Wolfenbüttel. Over 1200 lots are described in full in a 200 pages counting auction catalogue. All lots can be checked out online as well.



This 1000 mark share from the Landbank, Berlin, featuring a Jugendstil design, was printed in 1897 by the Reichsdruckerei. Only a handfull of these certificates are known. This one is part of the H-W Schmidt collection. L(ot) 762 in the auction starts at €800. 


The Hans-Werner Schmidt Collection of German banking securities forms a major section in this auction. This collection consists of lots 677 through 816 and has been assembled over several decades. A few examples:
  • Rarely seen is the bold industrial artwork of the 10000 mark share in the Ostbayerische Industrie- und Handelsbank AG, Furth i.W., 1923, L778.
  • L751, Herzogl. Sächs. Landrentenbank in Coburg, 100 mark bond, issued in 1911.
  • One of the most spectacular typographical designs in scripophily is the multicolor share certificate from the Preussische Boden Credit Actienbank, Berlin, 1873. L783



The 1873 founder share of the Stadttheater-Gesellschaft zu Hamburg is the top highlight in HSK's auction. The new stone building of the Hamburg State Opera was inaugurated in 1827. In 1873 the building was renovated in Gründerzeit style, as illustrated in the large underprint of the certificate. Gustav Mahler was the company's musical director from 1891 to 1897. In World War II Hamburg was an easy to find target and the opera house was destroyed by fire-bombing. Rebuilt in the early 1950s by Bauhaus architect Gerhard Weber, the Staatsoper reopened in 1955 with Mozart's Die Zauberflöte. L515 starts at €10,000. 


About 900 lots of German scripophily are presented in several sections:
  • L315-446 Bremen and Niedersachsen, for example L348 Deutsche Petroleum-Bohr-Gesellschaft, 1881, illustrated with an oil field vignette 
  • L447-519 Hamburg, e.g. L515 Stadttheater-Gesellschaft zu Hamburg, image see above 
  • Lot range 520 through 645 consists of a collection of Hamburg related zero numbered specimen certificates from the Deutsche Mark period. 
  • L646-676 Schleswig-Holstein and Mecklenburg-Vorpommern, such as L650, two shares in the Flensburg-Ekensunder Dampfschiffs-Gesellschaft, based in the very north of Germany.
  • L677-818 H-W Schmidt collection of German banking securities, see above
  • L817-1046 Germany before 1945, including L817 a 1852 share from the Aachen-Mastrichter Eisenbahn-Gesellschaft, bilingual in German and Dutch, two coat of arms 'Gott mit uns' and 'Je Maintiendrai', elaborate floral design.
  • L1047-1239 Germany from 1945 onwards, e.g. L1110 Deutsche Lufthansa Aktiengesellschaft, Köln, 1997, illustrated with a world map vignette



Polish Auschwitz survivor Jack Tramiel - who later formed Atari Corporation - founded in 1954 the Commodore Portable Typewriter Company. In 1955 the company was reincorporated in Canada as Commodore Business Machines, Inc., and went public on the NYSE under the name Commodore International Limited in 1962. Already in the early 1970s the company produced electronic programmable calculators. Reorganized in 1976, CIL moved its financiel headquarters to the Bahamas. Launched in 1977 the Commodore PET personal computer helped to bring personal computers to widespread use. L63 starts at €100. 


The American section counts 200 lots including several certificates signed by or issued to Thomas A. Edison, L79, L196, L197 and L78.  A Pan American Airways Corporation stock certificate from 1945, L155,  is issued to Sherman M. Fairchild who also signed it on reverse.  
Some other examples:
  • L106 is a bond from The Huntingdon and Broad Top Mountain Rail Road and Coal Company, large railway bridge vignettte, issued in 1862.
  • A lovely banking vault vignette adorns a Lowry Banking Company stock certificate, Georgia, 1894. L120
  • L26 The American Quick-Transit Steamship Company, 1882, Boston, Mass., depicts a large ocean steamer.



The European section in HSK's 42nd auction includes objects such as this 1904 share from the Société Anonyme du Théatre-Concert du Moulin-Rouge. Located in the Boulevard de Clichy, Paris, this cabaret became a world famous attraction with its can-can danse. Bids start at €200 for L292.


There is a lot more to discover in the catalog, so here are the details :

F.L.


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Saturday, August 14, 2021

Watermarks in Scripophily - part 2 Paper manufacturers

In Watermarks in Scripophily – part 1 I introduced you into the world of watermarks specifically on bonds and shares. This time we’ll talk about watermarks created by the paper makers themselves, perhaps the most obvious category of watermarks in scripophily. 

The first watermarks appeared in Italy during the 13th century. They were used to identify the papermaker or the trade guild that manufactured the paper. An interesting question is whether watermarks were invented, or just a side effect in the production process?



images 1a and 1b: When viewed against a light source, this Nira Valley Sugar Co share reveals a watermark pattern of bold vertical and faint horizontal lines. This is an example of laid paper. A detail of the pattern is shown here below. Click images to enlarge. The actual company and its share was described and illustrated in part 1 of this series, see here. 



European paper was initially made by dipping a wooden-framed screen, a lattice of metal wires, into a tub of warm water and cellulose fibers, scooping up this pulp, and then letting the water drain out. The cellulose came from cotton linters or recycled cloth (rag), and only much later wood fibers were used too. 

The cellulose fibers subsequently matted into a thin layer against the screen. For hundreds of years these screens had a rectangular design with widely-spaced vertical “chain” wires and closely-spaced horizontal “laid” wires tied on top of the chain wires.

In the process the wires in the screen compress the pulp fibres and reduce their thickness. The resulting patterned portion of the paper is thinner and lets more light through than the surrounding paper. 

The laid wires yield faint lines in the watermark. Chain wires have a greater impact and are responsible for the bolder lines. This type of paper is known as laid paper. A nice example can be seen above in images 1a and 1b.



images 2a and 2b: The Swedish immigrant Willgodt T. Odhner invented the Arithmometer, a pinwheel calculator. Following the Russian revolution, his company moved from St. Petersburg to Göteborg, Sweden. This 1918 share’s watermark reveals a coat of arms of the paper manufacturer Lessebo, a crowned beehive with the date 1719. The words ‘Handgjord Post’ translate as ‘handmade post’. Image courtesy Wilhelm Leiter 



Paper makers found out that they could add special designs to the watermark by sewing wire designs to the screen frame. A paper maker could now incorporate its coat of arms, a logo, or its name into the watermark. The product could now be identified and became difficult to counterfeit. An interesting example is the Original-Odhner share, see images 2a and 2b.

Often paper makers have a remarkable history. The Original-Odhner’s share’s paper manufacturer is Lessebo Paper. The paper mill was originally an iron mill established in the 17th century. In the 1690s the mill started making heavy paper for paper cartridges used for containing a bullet and gunpowder. In 1719 the mill gained permission to manufacture paper, a date that you see in the company’s coat of arms (image 2a). Lessebo Paper still manufactures hand-made paper today.

Over time, the production of watermarks became mechanized. During manufacture paper pulp is passed through rolls with a raised design. The designs applied on the rolls cause density variations in the produced paper. In turn, these density variations make an image or a pattern appear in the paper in the form of various shades of lightness and darkness. We speak of multi-tonal watermarks.

A relevant example can be seen in part 1, see there, namely the Indian Post Office 5-Year Cash Certificate. That paper shows light, dark and even multi-tonal watermarks giving the viewer an impression of depth. Another fine example can be seen on a Olivetti bond, see images 3a and 3b.



Images 3a and 3b: Ing. C. Olivetti & C. was founded in 1908 as a typewriter manufacturer and evolved into computers and smartphones. This certificate, issued 1948, has a watermark pattern, a repeating design that is applied all over the surface of the paper. Watermark patterns can be seen on many Russian railway bonds. In most cases it is not possible to detect whether patterns like these were designed by the paper manufacturer, or by commission of the certificate’s printer or issuer. The pattern on this Olivetti bond consists of diagonally placed geometrical figures. The multi-tonal shade gives you an impression of depth and the pattern appears as a structure of ‘buttons’, looking like bubble wrap plastic, something I usually cannot resist popping! 



In the 1700s James Whatman started a paper making business in Maidstone, Kent. He experimented with the wire screen used in the process. Whatman replaced the lattice of laid and chain wires with a screen of a much finer woven mesh of wires. As a result, the paper was formed on a much more uniform surface and showed no watermark pattern of lines, unless a wire design had been sewn to the screen. This type of handmade paper is called wove paper, and its invention led to what we know as modern paper today.

Whatman was probably the first paper company that added a year to its watermark, see image 4b. You may discover on your certificates watermarks by other paper makers incorporating a year as well. The shares in the United Commercial Bank, Calcutta, issued in the 1960s, show the T H Saunders (or parts of it) name with the year 1946. That company was founded by Thomas Harry Saunders. Famous for its diversity in watermark designs used on stamps, bills of exchange, securities, and the like, Saunders won medals at international exhibitions for his light and shade watermarks that were used to prevent frauds.



Images. 4a and 4b: Established in the 1840s as the Auckland Hotel, Kolkata’s Great Eastern Hotel, today known as the LaLiT Great Eastern, hosted many notable persons like Nikita Khrushchev, Elizabeth II, Dave Brubeck and M K Gandhi. This 1937 share was printed on wove paper. Its watermark shows the WHATMAN name, ‘HAND MADE’ and the year ‘1916’. 



You cannot interpret a year in a watermark as the year of paper production or as a print date. It should be seen as “paper produced not earlier than” because mills did not always update their watermarks.

Besides their name and coat of arms, paper mills sometimes added to the watermark an indication of the paper brand and the paper quality. That made it easy for stationery businesses and printers to look up the right type of paper in their inventory. As an example, I show here an American paper, see images 5a and 5b.



Images 5a and 5b: The Q1 Corporation was a pioneering microcomputer company. In 1972 they delivered the world’s first personal computer based on an 8-bit general purpose microprocessor, the Intel 8008. The share bears the watermark of the Strathmore Paper Co, founded in 1892, West Springfield, Massachusetts. The watermark shows the brand ‘Strathmore Script’ and its quality ‘100% Cotton Fibre’. Cotton fibres are strong yet soft and create a uniform paper surface that is strong and flexible. 100% cotton paper is often used for banknotes. 



In some cases, paper makers add to their watermark the location where the paper was made. Some examples from Indian shares: The Rajnagar Spg. Wvg. & Manufacturing Co Ltd, preference share, 1945, was ‘MADE IN ENGLAND’ and a 100 Rupees share in The Birla Mills Ltd, 1920, reveals ‘MADE IN CANADA’.

More of a surprise is a 100 Rs share from The Gold Mohur Mills Ltd, 1926, Bombay, telling us ‘MADE IN AUSTRIA’. Another example that illustrates the export of quality paper products is shown in images 6a and 6b.



Images 6a and 6b: From Egypt, the shares from the Alexandria Pressing Company that were issued in the 1950s have a watermark showing the name of the Norwegian company ‘BORREGAARD’, the paper type ‘TUB SIZED LEDGER’ and the location of the paper mill ‘MADE IN NORWAY’.



I conclude this part in the series with one of my favorites: a share in The Dahramsi Morarji Chemical Co Ltd, Bombay (DMCC). Its watermark shows the line LUCKY PARCHMENT, a design of a jockey racing a horse, and the words RAG CONTAINING underneath. See images 7a and 7b below.

Parchment paper is not to be confused with “parchment”. The latter is a writing material made from animal skin. The former is a type of cellulose-based paper (made from wood pulp and cotton fibers) which has been treated chemically to make the paper stronger, more heat resistant and above all non-sticky.

You’ll find the words PARCHMENT also in the watermarks of shares from McLeod and Co, Ltd (1940s) and many other scripophily examples. In my example, LUCKY PARCHMENT is a parchment paper brand from the Indian paper company Ballarpur Paper and Straw Board Mills, Ltd.

RAG CONTAINING is another line of text in the DMCC watermark. Rag paper or cotton paper is primarily made of cotton linters or from used cloth (rags). Cotton paper may last many decades without any sign of deterioration, see also images 5a and 5b before.



Images 7a and 7b: This share in The Dahramsi Morarji Chemical Co Ltd was issued in 1968. The company's headquarters were located at Dr Dababhoy Naoroji Road in Mumbai. The certificate shows the coat of arms of the company, including a tiny map of India, and has a watermark of a racing jockey. 



The DMCC’s remarkable jockey watermark seems unrelated but it is not. I learned from scripophily expert Sayeed Cassim (see also here) that the Ballarpur paper company was founded by Karam Chand Thapar, who headed the Thapar Group of companies. The Thapar family was involved in race horse ownership, hence the jockey.

Time for a quick review. The first watermarks were formed, likely unexpectedly, in the production process of what we now call laid paper. Paper makers then added a logo, their coat of arms, or their name to the watermark design. Some of them further added a year, a paper type or brand, and also a location where the paper was made. If you haven’t done so already, you might start viewing your certificates against a window.

In part 3, I’ll show that paper manufacturers start adding watermark elements on behalf of one of their important customer segments: security printers.


F.L. 

This article was initially published in Scripophily magazine No. 114, December 2020. 
You might be interested to read : Watermarks in Scripophily - part 1 Introduction 




Monday, July 5, 2021

Scripophily Puzzle No. 5 - solution

There was one scripophily detective that solved Puzzle No. 5. In order to solve the puzzle I provided three visual cues. These were images of an antique stock certificate, a banknote from India and a bronze commemorative coin. The common link between these three is a famous person. 

The correct answer for the puzzle is ... da-dum-da-dum-da-dum ... Steve Jobs.




The first image in the puzzle showed a stock certificate from the Xerox Corporation. The company is known for its multifunction office systems that scan, print, copy, email and fax. In 1973, about fifty years ago, Xerox's Palo Alto Research Center (PARC) was working on a small but groundbreaking computer, the Xerox Alto.  

Three years later Steve Jobs, Steve Wozniak and Ronald Wayne founded the Apple Computer Company. In 1977 the Apple II computer was released. At that time microcomputers were not the user-friendly systems that we know today. The Apple II however offered color graphics. It sold well but attracted mainly computer enthousiasts.




In 1979 Steve Jobs managed to visit Xerox PARC with several Apple engineers to see a demonstration of the Xerox Alto. Xerox granted them three days of access to the PARC facilities in return for the option to buy 100,000 shares of Apple for $1 million.

The Xerox Alto system must have looked phenomenal to the visitors. It supported a GUI (Graphical User Interface) that interacted with a computer mouse. Its innovative software included the first WYSIWYG (What You See Is What You Get) document editing system, an email client, a network-based multi-person video game, and lots more. 

Apple used the Xerox Alto concepts to introduce its next generation of systems, the Apple Lisa and the Macintosh. 




The second visual clue in our puzzle was an Indian banknote. We'll skip this one for a moment and talk about the third clue : a commemorative bronze medal. Illustrated is the reverse, the obverse was shown in the Puzzle No. 5 challenge, see here. 

The medal was issued to commemorate IBM's 33rd anniversary (1914-1947) under the leadership of Thomas Watson Sr. After World War II the company became the biggest manufacturer of mainframe computers. Watson conceived the slogan "THINK" by which he meant "to take everything into consideration .. and then act". 

THINK signs were hung on the wall of every room in every building. Employees carried a THINK notebook in which to record ideas. IBM's monthly magazine Time was renamed 'Think'. Decades later IBM products like the ThinkPad laptop computers still honor the idea behind the slogan. The word was a part of IBM's corporate culture. 




In the 1980s IBM released several versions of its successful IBM Personal Computer. Apple, with its showpiece, the Macintosh, was unable to gain much market share from IBM and the many IBM PC clone manufacturers. In 1985 Steve Jobs leaves Apple after a management struggle. For a decade Apple failed to come up with profitable products, and it was only weeks away from bankruptcy when Jobs returned in 1997.

Steve Jobs then asked three advertising agencies to present new ideas for a marketing campaign that reflected his philosophy. The slogan "THINK DIFFERENT" was the outcome and was a response to IBM's slogan "Think." 

The THINK DIFFERENT campaign included promotional magazine ads and large billboard posters that had black and white photographs of revolutionary people and events. One ad had a photo of Einstein, another a photo of John Lennon and Yoko Ono. Another one had a photo of Mahatma Gandhi. The campaign was a huge success. The Apple iMac debuted in 1998.




The remaining visual clue was an Indian banknote. The 500 Rupees note, introduced in 1987, shows Mahatma Gandhi on the obverse. On the reverse we see Gandhi and his followers at the Dandi March.  

Steve Jobs was an admiror of Gandhi. He reportedly started wearing round, wire rim glasses just like Gandhi did. When asked by Time Magazine who would be the Person of the Century in 1999, he replied 'Gandhi'. 

Gandhi appeared on one of the posters from the THINK DIFFERENT campaign. Be the change you wish to see in the world, said Gandhi. No doubt, Steve Jobs (1955-2011) wanted to change the world too. And he did.




A quick wrap up. The clues of Puzzle No. 5 lead to the solution "Steve Jobs" in the following way:
  • stock certificate from Xerox Corporation : Xerox Alto computer
  • commemorative IBM medal : THINK slogan
  • 500 Rupees banknote from India : Mahatma Gandhi
Scripophily detective RS provided a correct answer. Great job. You are now entitled a portion of "eternal fame".

Friday, August 16, 2019

Before computers ruled the Earth

After World War II, policy makers and scientists thought that the world would only need a handful of computers. We know better now. Today, devices like wristwatches and washing machines, and even tootbrushes, are equipped with computers sized less than 10 mm². These 'embedded’ computers have become a commodity. 



vignette from a stock certificate in the GM Hughes Electronics Corporation


The definition of a computer has changed with time 

During the Middle Ages the word ‘computer’ was used for a person employed to perform computations. Following advances in mathematics and technology, people tried to develop calculating devices to save time and prevent human errors. In 1623, the German Wilhelm Schickard designed the first calculating machine capable of doing simple additions and subtractions. 

These ingenious devices calculated outcomes in mechanical ways and are not comparable to what we know as modern computers. To understand this jump in technological evolution, we need to look at the definition for ‘a modern computer’. 

Simply said, a computer is a machine that ‘performs work’ or ‘output’. In order to perform that work the machine requires some ‘input’, like information and energy. This seems obvious today but imagine that you are a cotton dealer, let's say, somewhere in the 1790s. 

You - the cotton dealer - visit the watchmaker in your town, then the finest engineer in precision mechanics. You tell him that you need a machine that can perform some work. You explain your watchmaker also that you want to provide instructions to the machine so it can perform different kinds of work. Furthermore, the machine should be able to ‘store’ these instructions and ‘carry them out at some time’. Your watchmaker would be perplexed, maybe even terrified.



Jacquard’s loom, the first use of punched cards holding instructions to control machine function 
image: G. Bruno - Le Tour de la France par deux enfants, Engineering and Technology History Wiki 


Babbage, conceiver of the programmable computer

Our watchmaker in our story just now, actually received an order for our computer: a programmable machine, one that can be fed with instructions to be executed at some time. The merchant in the story was the English mathematician and engineer Charles Babbage (1791-1871). He was the first person to conceive the idea of a programmable computer. 

In 1822 Babbage designed prototypes of his ‘Difference Engine’ which could calculate polynomial functions and print the results automatically. His ‘Analytical Engine’, described in 1837, had a far more elaborate design. It would have been capable of storing 1,000 large numbers in a mechanical way and it would be programmed using punched cards that just needed to be put into the machine and let it run. 

Using punched cards for controlling a machine’s output was an idea coming from loom technology that Babbage applied in another context. Joseph-Marie Jacquard earlier had improved the weaving process by using punched cards. The holes punched in the cards corresponded to the woven rows of the textile pattern. 

Babbage could never complete his machines due to lack of political support and budget problems. He left us only partial prototypes and his paper designs, and the idea of a general purpose computer.



1881 share certificate in the Connecticut Telephone Co, the first telephone switching office (New Haven) 


The Industrial Revolution leads to development of computer elements 

In the 19th century, increases in industrial activity and international trading were accompanied by comparable increases in the amount of data to be processed by companies.

Faster and more reliable communication over longer distances became crucial. Different forms of transmitting information appeared and several technological advances quickly succeeded each other. All of them contributed to the making of the modern computer :

  • 1829 William Austin Burt patents the first typewriting machine in the USA. 
  • 1830 The American Joseph Henry demonstrated the first electric telegraph 
  • 1843 Per Georg Scheutz (Sweden) and his son Edvard finished their version of Babbage’s Difference Engine. It was the first machine that could print mechanically calculated tables. 
  • 1846 Alexander Bain uses perforated ‘ticker’ tape to transmit telegrams. 
  • 1852 Charles Xavier Thomas de Colmar starts the commercialisation of his Arithmometer, the first mass-produced mechanical calculator in the world. 
  • 1861 The Italian Giovanni Caselli invents the first practical telefax machine. 
  • 1865 Rasmus Malling-Hansen of Denmark invented the Writing Ball, the first commercially sold typewriter. 
  • 1867 Christopher Latham Sholes starts designing the first successful typewriter with a keyboard as we know it today. Remington will manufacture the model in 1873 with the QWERTY layout. 
  • 1870 William Stanley Jevons, a British logician, constructs the first practical logical machine by means of which a conclusion could be derived mechanically from a set of premises. 
  • 1870 Thomas Alva Edison invents the Universal Stock Ticker, a forerunner to the electric typewriter. It printed telegraphed information remotely on a typewriter. 
  • 1876 Alexander Graham Bell patents the first practical telephone, but it will take almost another 100 years before computers start using telephone lines for communication.



Société Bénéficiaire de la ‘Remington-Sholes Visible’, 1000 Francs share, 1910 
This Paris based company obtained the rights to distribute the Remington-Sholes Visible typewriter in France. 


The office computing revolution 

In 1880 the US Census took place. It took seven years to process the data manually. With a lot of new immigrants in the 1880s, the Census Bureau realised that it would be impossible to process the 1890 census data before the next census in 1900. 

Herman Hollerith devised an electric tabulating system to accomplish the task of quickly counting and sorting data. He used punched cards like Jacquard, but this time, instead of machine instructions, the actual data was punched on the cards. Information categories like age, sex, etc. were represented by specific holes on the card. It was a success. The 1890 census was processed in a few months. 

In 1896 Hollerith formed the Tabulating Machine Co. His tabulators were quickly introduced in Europe for other censuses, and in accounting, banking and industry. Tabulators, and peripheral machines for managing punched cards (records), would be the most important data processing machines for more than fifty years. 



International Business Machines Corporation, unissued stock certificate on punch card 
Around 1970 several attempts were made to deal with the huge amount of paper work involved with stock market  transactions. One of these trials involved the introduction of punch card stock certificates combined with optical character recognition technology. 


Hollerith’s company eventually merged with three other companies to form the Computing-Tabulating-Recording Corporation. Thomas John Watson renamed it into the International Business Machines Company (IBM) in 1924. 

IBM had a fierce competitor that was offering cheaper machines. That was the Powers Tabulating Machine Company, later known as Powers Accounting Machine Company. Formed in 1911. Powers merged in 1927 together with Remington Typewriter Company and Rand Kardex Company to form the Remington Rand Company. 

In the UK, Hollerith formed the Tabulator Ltd in 1902. The company obtained the rights to sell Hollerith’s machines. Renamed in 1909 as the British Tabulating Machine Company, it would eventually become ICL. Here, in the UK, the Powers-Samas Company was competing with Hollerith’s BTM.

In Germany Hollerith founded the Deutsche Hollerith Machinen-Gesellschaft (DEHOMAG) in 1910.



The vignette on the National Cash Register share shows the company's Class 2000 electric accounting machine. Introduced in 1921 it featured 30 totalizers. NCR will build during WW II electronic code-breaking machines. Not much later they become a well-know computer manufacturer. 


 The National Cash Register Company, 100 shares, issued 1955 


In this pre-electronics period, typewriters, calculators, cash registers and tabulating machines went into mass production by American companies like National Cash Register Company, Burroughs Company, Powers Company and Felt & Tarrant Company.

The Bull, Elliot Fisher and Odhner companies serviced European offices. A Japanese electric tabulating machine was developed at the Ministry of Communications and Transportation in 1905.

The machines became reliable, smaller and simpler in use and manufacturers started to electrify parts of their products. However, their devices were still single purpose machines. And they could not ‘store’ instructions. Babbage seemed to have been forgotten.


The pre-World War II period sets the stage 

The Englishman Alan Turing conceived his Universal Turing Machine in the 1930s. This ‘UTM’ would read symbols, such as letters and numbers, from a tape device, process them by using transition rules, and output new symbols as a result. Turing realized the transition rules, which were just symbols, could be put on tape as well and be read by his machine, instead of building them into the ‘hardware’. 



Brown, Boveri & Cie, Mannheim, 1000 DM specimen bond, 1956 
German engineer Konrad Zuse built his Z1 electro-mechanical computer in the late 1930s. The machine used a binary system: it used only 0s and 1s. His company, Zuse KG, was purchased in 1964 by the German subsidiary of Brown, Boveri & Cie, who in turn sold most of its Zuse interests to Siemens three years later. BBC would introduce in 1969 its first industrial process computer, the DP-100. 


At that time the German engineer Konrad Zuse used what is called a ‘binary system’ in his Z1 machine. A binary system, also known as a digital system, uses only 0s and 1s. The basic element Zuse used for his machine was a mechanical switch, which could represent a 0 and 1 (off/on state).

Zuse’s Z3 machine, operational in 1941, used relays (electromechanical switches). It was the first programmable digital computer but it could not store its program because it was read from punched film tape. The German High Command refused any further funding for a much faster machine using vacuum tubes. 



American Telephone & Telegraph Company, stock certificate for 2 shares, 1942 
The signature at the bottom right is from Walter Sherman Gifford, then the company's President. In 1927 Gifford had a video telephone conversation with Herbert Hoover via AT&T's telephone network. Talking about innovation ! 


In 1939 the Bell Telephone Laboratories subsidiary of the American Telephone and Telegraph Company built the first computing machine to work remotely over telephone lines with teletypes. 

The same year, Harvard University, under the lead of Howard Aiken, started building the Harvard Mark I at IBM. This electromechanical giant was finished in 1944. It was driven by a five-horsepower electric motor and used 500 miles of wire.

In Japan Fuji Electric Works worked in 1940 on a relay-based computing machine.


World War II created demand for more sophisticated computing machines 

WW II forced the Allies to develop general purpose computers. The English BTM company devised ‘The Bombe’, an electromechanical machine to break the coded messages generated by the Enigma machines of the German Navy.

In response to the more sophisticated Lorenz machine, used by the German High Command, an entirely electronic machine, the Colossus, was completed in 1943 at the Government Code and Cyphering School in Bletchley Park. This digital machine stored the deciphering key in its internal vacuum tube memory. Yet this machine still was not a general purpose computer. 

The US military faced another pressing problem: the mass generation of artillery firing tables. The Electronic Numerical Integrator Analyzer and Computer (ENIAC) was built by John Mauchly and John Adam Presper Eckert at Pennsylvania University. This 30 tons weighing electronic machine was finished several months after the war. It could perform 5,000 additions per second and was 1,000 times faster than relay-based machines.

The ENIAC proved electronic systems were viable. However, it was hard to reprogram the machine as it needed to be rewired for each new task. The ENIAC solved problems in minutes but took days to reprogram.



International Business Machines Corporation, stock certificate from 1946 
In 1944 IBM starts building the Selective Sequence Electronic Calculator. The "SSEC" was a hybrid of vacuum tubes and electromechanical relays. Instructions were read from paper tape. 


In parallel with the ENIAC development, Eckert and Mauchly started to build the Electronic Discrete Variable Computer (EDVAC), a stored-program computer. The internal architecture became known as the ‘von Neumann’ machine.

John Von Neumann conceived the idea of a special ‘control transfer’ instruction which permitted interrupting and restarting program execution at any point. Since this point almost all computers have contained five major architectural components: input, output, memory unit, control unit and an arithmetic unit.

Also at the other side of the Atlantic Ocean research teams joined the race for the first general- purpose electronic computer.

At Manchester University, Freddy Williams used a cathode ray tube surface for storing program instructions. CRT's were used as radar and television screens. It was Williams' team that finished in 1949 the first electronic digital general-purpose stored-program computer. The program had to be written in binary code, a laborious and error-prone process.



J. Lyons & Company, Ltd, 8% cumulative preference stock, 1951
This company was a British restaurant and tea-shop chain, food manufacturing business and hotel conglomerate. In 1947 J. Lyons provided additional funds for the pioneering EDSAC project at the University of Cambridge. After its completion the company decided to build a digital general purpose computer on its own, the LEO I (Lyons Electronic Office).


Maurice Wilkes, from Cambridge University, used an idea from Eckert to store the program instructions not in a million vacuum tubes but to use sound waves circulating in mercury delay lines. His Electronic Delay Storage Automatic Calculator (EDSAC) project received crucial support from J. Lyons & Company, Ltd.

The EDSAC was the first practical general-purpose stored-program computer because it was much easier to use than its predecessors. Wilkes used an alphabetic shorthand for programming, which was faster and more intuitive for the programmers. The computer then translated the shorthand into binary instructions. The age of computing could now really kick off. 


F.L. 

PS
  1. This article is based on an article previously written for Scripophily magazine, Dec 2010, No.84, published by International Bond and Share Society 
  2. More about computer history and scripophily ? See here  


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Saturday, August 20, 2016

What is a share certificate, what is a stock certificate ?


Share certificates are no testimonies of charity, nor are stock certificates a special kind of inventory lists. But what are they? If you are not really into finance, you might not know what these objects stand for. 

Millar Loom share certificate issued to Lieutenant-Colonel Enrnest Richard Hope Torin
The Millar Loom Company Limited
Share certificate for 100 shares of £1, printed by Howard and Jones, London
double-click image to enlarge
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The Millar Loom Co Ltd was formed to buy patents for a new type of loom.
This particular share issued in 1898 mentions that Lieutenant-Colonel Ernest Richard Hope Torin
is the Registered Proprietor of the certificate. From 1874 to 1884 he served 
with the 13th Hussars cavalry (Baden-Powell) in India and Afghanistan . 
You can see Torin's picture here. 


Synonyms
Both terms, share certificate and stock certificate, mean the same. They are synonyms. The former is more widely used in Commonwealth of Nations countries (e.g. UK, Canada, Australia, India), the latter is preferred in the US. The word stock refers to the capital stock of a company.

Here are the terms in some other languages :
aandeel , action, actie, Aktie, részvény, azione, acción, ação, osake, acțiune, hlutabréf, hisse senedi, aktiebrev, АКЦИЯ, АКЦIA, μετοχή, תעודת מניה, शेयर, 股權證書, 株券, 주권 , شهادة الأسهم
Just like in English, probably every language has its own synonyms. In Germany we speak of Aktie and Anteilschein, in France of action, part or titre, in Swedish aktie and aktiebref, in Spain acción, parte and cédula.

Art Nouveau design in the acción al portador from the Minas de Carmenes company
Minas de Cármenes Sociedad Anonima
Share of 500 Pesetas, série A, Gijon, 1903
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A bearer share certificate, in Spanish:acción al portador, 
is issued without mentioning the shareholder's name. 
The lower half of the certificate shows 32 dividend coupons.

Ownership in a company
In order to explain what these certificates are, I must tell you first about companies. Suppose you want to start a business. Then you will need an amount of money to get your business up and running. You likely will have to lease or invest in business assets, pay for work or services, buy consumer goods, and lots of other things.
But your financial resources may not be sufficient; or, you might want to share the investment risk with others. These are the main reasons why you form a joint-stock company. In that case, you allow others to participate when they co-invest in your company. In return they receive share certificates in your company in proportion to the amount invested. So, a share certificate represents ownership in a company.

Stichtersaandeel in  Ypersche Weverij - Le Textile Yprois uit Ieper
Ypersche Weverij Naamloze Vennootschap
Le Textile Yprois Société Anonyme
English : Ypres Textile Company
Registered founder's share, 1924
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Registered shares mention the name of the shareholder,  
which is also recorded in the company's shareholders register.
It is an effective method for the company to stay informed 
about its shareholders.

Physical papers
A share certificate is a piece of paper that mentions the name of the company, the number of shares owned, the date of issue and an identification number. To avoid forgery, their designs contain a number of security features such as legal signatures of company officers, corporate seals, water marks, engine turned designs, etc.
Share certificates were created decades and even centuries ago. The lucky ones that have survived such a long, often remarkable journey through time are now residing comfortable with other companions in a collection or even a museum. Now, share certificates have mostly been replaced by electronic accounts in today's financial networks.

Tagalsch Prauwenveer stock certificate mentions ownership transfers on rear
NV Tagalsch  Prauwenveer
Registered share of 600 Gulden, Batavia (Jakarta), 1902
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The company operated a proa ferry and ship unloading service
 at Tegal at the north coast of Central Java. 
The rear side (right image) tells us that the share 
was transferred to a new owner in 1920 and later in 1938. 
double-click image to enlarge

Being a shareholder
Shareholders are only liable for the company's debts to the value of their shares. This concept of limited liability is one of the success factors of this type of business organization. Shareholders have voting rights at the company's shareholder meetings. And they can expect to receive a proportional share in the company's profits. When the company dissolves, they receive a proportional share of the liquidation proceeds.

Bearer share (Inhaber) from the Walther Electronic Aktiengesellschaft, Germany
Walther Electronic Aktiengesellschaft
1 Share of 50 DM, issued Gerstetten 1979, with corresponding dividend coupon sheet
This company originates from 1886 when it started manufacturing tools and guns. 
In the 1970s Walther produced electronic calculators and text processors.
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Many German shares are bearer shares stating that Der Inhaber dieser Aktie 
ist bei der Aktiengesellschaft nach Massgabe der Satzung als Aktionär beteiligt,
which means that the owner (Inhaber) of this share is a shareholder 
of the company in accordance with the company's rules. 

Registered versus Bearer 
When the name of the shareholder is registered in the company's share register, the issued certificate will state his/her name and therefore is called a registered certificate. When it is sold, the name of its owner will be replaced in the company's share register. Either a new share will be issued for the new owner and the old certificate will be cancelled, or the name of the previous owner will be overwritten on the certificate, and a statement of ownership transfer is written on the rear.
Bearer shares, on the other hand, do not mention the owner's name. These are owned by an anonymous "bearer". Such shares can be sold to another party without the knowledge of the company. Bearer certificates have been popular because they were easy to sell (without transfer taxes).

registered stock certificate from the Chicago, Burlington and Quincy Railroad Company, dated 1903
Chicago, Burlington and Quincy Railroad Company
Stock certificate for 100 shares issued in 1903 to Henry Clews & Co.
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Almost all American stock certificates are "registered" and state that 
shares are transferable only on the books of the company in person or by attorney...

Dividends
A company usually distributes a fraction of its profits among its shareholders. A certain amount for each share will then be allocated. The income received from the ownership of shares is called a dividend.

  • In case of a registered share certificate, only the officially registered shareholder receives dividend payments. Dividend payments were often written on the rear side of the certificate. 
  • Bearer certificates have a sheet of dividend coupons. In return for a clipped coupon, a shareholder receives a dividend payment. By counting the number of missing coupons, one can tell how many dividends have been paid out.

Vereenigde Oost-Indische Compagnie (VOC)
In 2010 Ruben Schalk, history student at the Universiteit Utrecht, 
discovered the so far oldest share in the world in the Westfries Archief in Hoorn. 
The certificate dates from September 9th, 1606. 
The second page records the payments of dividend.
Source: Wikipedia.

Amazing, exotic and even weird species
The world of share certificates would certainly have interested Alexander von Humboldt whose work on botanical geography laid the foundation for the field of biogeography. As centuries passed, share certificates adapted to new political, economical and regional conditions and evolved into several types (founding shares, preference shares, et cetera) and local varieties. 
Do they teach scripogeography at Oxford ?

25 shares of 4 Egyptian pounds in the Stationery Industries company from Alexandria

Stationery Industries (Société Anonyme Egyptienne)
Titre Nominatif de 25 Actions de L.E.4
English: Registered certificate for 25 shares of 4 Egyptian Pounds
Alexandria, 1956
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This "hybrid" share certificate has some bizarre characteristics. 
a) It is a registered certificate, yet there is a dividend coupon sheet attached 
(partly visible in the upper image). 
b) Although it is a registered certificate, the name of the registered shareholder is not mentioned.
Was this an error in the print design?
c) Even though the first owner is unmentioned,  we see on the rear side 
dates (date de la cession) and names of new owners for two share transfers (lower image).




F.L.

Related links




PS 😉 : Who is in 2016 the most known person in the world ? Tip: it is a shareholder.

Trump Hotels & Casino Resorts, Inc.
This certificate looks like and is produced in the same way as a share certificate, but it isn't one. 
It is a specimen certificate. More about specimens in Euratom specimen or proof ?
Image courtesy : Scripophily.com