Operating from 1897 until 1991, the Spokane Stock Exchange officially closed for the final time on May 24, 1991. In its 94 year history it had closed temporarily a few times due to financial losses, but had reopened each time. The exchange was started in Spokane, the corporate centre of mining in the Pacific Northwest, to handle mining stocks of mines in southern British Columbia, northern Idaho’s “Silver Valley” in the Coeur d’Alene Mining District, and Northeastern Washington. For much of its history it sold mostly, sometimes exclusively, penny stocks, known as Over the Counter (OTC) stocks.
The exchange occupied quite a few different premises in Spokane over the years, including three locations on Riverside and 725 W Sprague for 40 years. From 1918 to 1927 its home was rented space on the ground floor of the western, older, section of the Paulsen Building. At the time this was one of the most, if not
the most, prestigious locations in the city.
Occupying the entire south side of the 400 block of Riverside Avenue, the Paulsen Building was built in two sections at two different times. The older eastern half was designed by architects J.K. Dow and C.Z. Hubbell and built in 1908-1911. Using all steel construction, an advanced method for the time, allowed it to become the tallest building in Spokane when built. The western half of the building, somewhat shorter, was designed by Gustav A. Pehrson and built in 1928-29. Contrasting the intricate ornamentation of the original section of the building, its style is Art Deco, one of the most popular styles of the day.
The Last of its Kind
The Spokane Stock Exchange operated from 1897 until 1991. It was one of about 200 regional exchanges initially trading in mining shares issued as penny stocks (shares selling below a dollar). Spokane, the railroad and commercial center of the "Inland Empire," was already the corporate headquarters for most of the gold, silver, lead, and zinc mines of the region. Thus it was the logical location for such an exchange.
At its peak of operation, the Spokane Stock Exchange rivaled the mining exchanges of San Francisco, Denver, Salt Lake City, and Toronto. While other stock exchanges adopted new technologies, the Spokane Stock Exchange continued to post transactions on a chalkboard. Trading swung from brisk to so desultory that from time to time the exchange closed. Although the exchange occupied several buildings over the years (including 725 W Sprague for 40 years, and three different locations on Riverside) it was always situated so that observers could watch its quotations being posted. Such transparency, though, did not extend to after-hours backroom trading, and with the introduction of state and federal regulation, its activities come increasingly under the scrutiny of the Securities and Exchange Commission.
The Spokane Stock Exchange crashed along with others in 1929, recovered after World War II, and enjoyed an expansion with the silver boom of the 1960s. Its downfall began in the 1980s when the admission of a particularly shady operator reawakened the attention of the SEC, which threatened punitive action. Broker loyalty vanished, and the Spokane Stock Exchange closed on May 24, 1991, the last regional mining exchange in the United States.
By 1900, the silver/lead output of the Coeur d’Alene Mining District was $10 million dollars, and there were 534 principal mining claims operating. Many of these, of course, were traded on the Spokane Stock Exchange. The 1900 Spokane City Directory listed 55 mining brokers. During its earliest years, the stock exchange moved from one building to another, but
from 1918 to 1927, it rented space on the ground floor (later the first floor) of the Paulsen Building, 400 block on Riverside, one of Spokane’s most prestigious business locations.
From the History Link