The origin of the Milwaukee Grain Exchange, one of the chief national markets for the trading and inspection of grain, is closely linked with the early commercial history of Milwaukee. The earliest forerunner of the present organization, the Milwaukee Board of Trade, was formed in 1849. In 1858, this organization merged with its rival, the Milwaukee Corn Exchange, formed in 1855, to become the Milwaukee Chamber of Commerce. Unlike contemporary chambers of commerce whose function is promotional, the sole function of this organization was the trading of commodities. In Milwaukee, promotional functions were carried out by a separate association of business and civic leaders. In 1868, the Chamber of Commerce was granted a state charter, which included special powers to cite matters of perjury, set up a board of arbitration and appeals to settle commercial disputes among members, and to weigh and inspect all commodities in which the membership traded.
Although men having wide commercial interests purchased membership, the sole concern of the Chamber of Commerce until 1931 was the marketing of grain. Ideally located in the heart of an agricultural region and at the intersection of domestic and international trade routes, the Milwaukee market emerged during the Civil War as the leading wheat market in the nation, having an influence in determining prices as far away as European markets.
Aside from its locational advantages, part of the primacy of the Milwaukee market arose from its pioneering marketing techniques. Its grain elevators afforded unique advantages for the rapid handling of large volumes of grain, which arrived in small lots. Trading in grain futures began in 1864, as early as in any other Midwestern market. The charter of the Chamber of Commerce served as an example for other city grain markets, and the trading floor (“the pit”) of the Chamber of Commerce building (probably dating from 1864) was similarly borrowed by other markets. The Milwaukee market built much of its reputation among shippers from its adoption of fair standards for grading and inspection during the 1860s. Also, evidence suggests that members of the Chamber were active in the movement for state regulation of railroad and storage rates.
After 1873, partly as a result of changes in transportation routes and partly as a result of the westward shift of the wheat growing regions, the Milwaukee market began to decline in importance in the wheat trade. Although it continued as a point of exchange, in the international wheat trade until 1900, Milwaukee increasingly became a point of transfer to Eastern grain mills. At the same time, however, its importance in the exchange of other grains began to rise. As a result of the consumption needs of the local breweries, the Milwaukee market emerged as the leader in the national barley trade during the 1930s.
Changing its name to the Milwaukee Grain and Stock Exchange in 1931, the organization took advantage of its charter provisions to become a securities market, although the volume of its sales remained small and of local interest. In 1946, recognition of the loss of this function was noted when the organization changed its name to its present title, the Milwaukee Grain Exchange.
