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Opinion
Paul J. Davies

Bad News, London and New York: Finance Hubs Are Becoming Obsolete

The need for people to gather in the same place to swap information and securities is fast disappearing.

Heavy traffic outside the Royal Exchange in the City of London, circa 1880.

Heavy traffic outside the Royal Exchange in the City of London, circa 1880.

Photographer: General Photographic Agency/Hulton Archive

Stand on the steps of The Royal Exchange in the heart of the City of London and you can picture the churn of people 200 years ago or more in what was becoming the world’s preeminent financial hub. Stock jobbers, traders and financiers would stream between its great limestone columns with the Bank of England to one side and all surrounded by offices of bankers or trading houses and alleyways to the ever-busy coffee shops.

The exchange was where transactions happened, but the coffee shops played an equally important role in the lifeblood of markets as information centers. People hung out there for refreshment and gossip but also all the details of supply and demand. “[T]he coffee men vied with each other in maintaining the supply of a wide variety of domestic and foreign newspapers, news-sheets, journals and bulletins, customs entry forms, auction notices, price-current lists, etc,” according to David Kynaston’s “City of London: The History.”