The Nyack Idea

"At the Stock Exchange we come into firsthand contact with the range of knowledge--the economic literacy--of a broad cross-section of the American people. That knowledge, not to mince words, is often shockingly inadequate." So said George Keith Funston, president of the New York Stock Exchange, addressing last week the National Association of Secondary School Principals in Portland, Ore. His explanation: "We do not teach economics."

Funston pointed out that a decade ago, only 4% of the nation's 10 million high-school students were ever expected to take economics, and that only one state, Oregon, required economics for a high-school diploma. Since then, "the number of students taking economics shows no discernible upward trend," although in the same decade the number of Americans who own stock has nearly doubled from 6,500,000 to 12,500,000--owing, in no small part, to Funston's own efforts to bring new investors into the stock market.

But Funston believes this economic know-nothingness is not an insoluble problem. Nor is economics "too tough" for high-school minds, providing it is made "real and exciting." What is needed, says Funston, is more required courses and more and better teachers. As an example of what can be done, Funston cited the twelfth-grade teacher in New York's Nyack High School who collected 50-c- from each pupil to form an investment pool. Together the class conducted an enthusiastic search for the right company in which to invest their $18, finally bought one share of American Zinc (price last week: $15), avidly followed the market fortunes of "their" company all year--learning something of taxes, tariffs and fiscal policy in the process. To top it off, American Zinc President Howard Young heard about the experiment, at year's end visited the class himself to conduct an "annual meeting" and answer questions. Said Funston: "I hope the Nyack idea will spread from coast to coast."

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