Evening star., 1903-07-11

banks of New York and Massachusetts, are
permitted to invest in the bonds Of rail-
roads which have paid dividends consecu-
lively for ten years. and the savings bank
laws of some of the other states are more
liberal Every holder of an insurance pol
icy Is interested in Wall street because
insurance companies are heavy holders OF
securities. For instance, the thirteen New
York companies whose outstanding poll
cies in 1902, amounting to more than So'-
600 600 600, numbered 2293,OOO, own $697,-
$50, ,473 of stocks and bonds, besides loan
ing $33,413,OOO on securities. Churches
colleges and other institutions have their
endowments largely invested in stocks and
bonds.
whole country, of every class of Its inhabi-
tants, of every section and of every trade
and industry. And 1t is a mirror or It's
prosperity. There are stock exchanges in
twenty-one of the cities of the United States
and Canada, but most of these are neces.
sarily local in their scope. The national
stock market is in New York. So much is
this the case that no considerable part OF
the membership of the exchange represents
other cities. There are members VINO re-
side in Chicago, Boston Philadelphia, Bal
timore, ST. Louis, Minneapolis, Washington,
Detroit, Cincinnati, Richmond, Toronto,
Kansas City, Cleveland, P1ttsburg, Roches-
ter, Williamsport and Buffalo. The stock
brokers in New York maintain branch Of
fees in many other cities. most of them
connected by private wires with Wall
street.
There are times indeed when Wall street
is in a minority in its own market, the west
actually being the controlling influence.
There are powerful groups of investors and
SPECTATORS in Chicago, Pittsburg, Phila-
delphia Boston, ST Louis and other cities,
and their operations center in Wall street.
An "Income Market"
1t has been said that the stock market Is
a place where stocks and bonds are sold,
but better definition would be that 1t Is
an income market. Witt Wall street trades
In chiefly is incomes Stocks and bonds
would possess no value II they did not pro-
vide incomes, or at least the prospect of in
come in the shape OF dividends on STOCKS
and interest on bonds.
The stock market is divided into two main
divisions investment and speculation. The
| former represents the operations OF those
| who desirous of permanent and settled in
| comes. buy securities outright and put
| them in vaults for safe keeping. This class
| includes an army of individuals and cor
porations, and 1t constitutes the backbone
| of the stock market. All securities pass
| through several stages of promotion and
speculation, but the ultimate goal Is the
| stage of investment. Bonds generally be-
| long to the investment class, although
! there are some speculative bonds. Common
! stocks are the chief speculative commodi-
| ties of the street, although there are in
vestment stocks.
Geographical Friendships.
The speculative market is much the larger
| and the volume of speculative trading
reaches an aggregate that almost staggers
| the mind For instance, in the high record
| wear of 1901, the sales of stock in the stock
| exchange amounted to more than twenty
J five billion dollars, and this total would be
| largely increased If the business of the
| consolidated exchange and the curb market
| were added. AS 1t Is. 1t amounted to three
| times the par value Of all the stocks listed
! by the stock exchange. 1t not infrequently
F.; happens that in the course of a year the
| capital stock of a company may be sold ten
| to twenty times over. In one day, April