Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-12-31
Years Business on
Local Stock Exchange

The biggest year in the record of the
Washington Stock Exchange. That In
brief is the report that Is made of the year
which has just closed. The figures of the
books Kept by Mr.. Hume the secretary Of
the daily transactions show that and so
does the income of the various brokers.
The latter have been sufficient to make It a
good business proposition on the part of at
least two of the members to pay the I'M
heard-of price of $4,000 for their seats.
The approach to this level from that
when the sum of $50 was paid, time
which Is still within the recollection of
members of the exchange who are by no
means among the older men, has been
somewhat gradual, but of late 1t has adj
vanced by leaps and bounds. until 1t has
reached the point above mentioned. where
1t still stands as the high-water mark In
the cost of a membership in that body.
How 1t has come about that business has
been so lively Is not hard to understand
when the general conditions are under
stood. In the first place, the banks have
had more money to lend. which enabled
those who wanted to take a flyer in the
local market to do 1t without having at
their command the entire amount that
would have been needed for a cash pay
ment. Trading on margins, as 1t is called,
generally has grown to large proportions
in the local market, but, of course, on
rather different principles from those which
prevail in the larger market of New York. -
The margin here is broad. SO as to de-
prive, the transaction of what might be
termed it's purely speculative character.
Such a thing call loans Is not dealt IN
here practically, for while on the face OF
1t nearly all collateral loans are such as
might be given that name. still there Is
no time fixed when they are to be paid.
The lender can demand payment when
he wishes to, but in point of fact the Gus
tom here with loans of that character Is
not to press the borrower unduly or to take
advantage, so that 1t rarely happens that
the security on such a loan is sold out to
meet the obligation.
In centers where the simon-pure call loan
exists the sale of the collateral takes place
promptly upon the expiration of the time
named in the note, and that Is the end of
it. But here such summary methods are
not followed, so that call loans are in prac-
tice time loans.
Favorable conditions have resulted in en-
HANGING the value of many local securities,
so that the attention of investors and of
spectators has been drawn to the local
stock market. Some idea of the extent to
which this has taken place may be found
in case of the common and the preferred
stock of the Washington Railway and Elec-
trio Company. One day, when one of those
free exchanges of ideas or of remarks were
going on in the intervals or in the midst
of the daily call, the president of the ex-
change, Mr.. Hibbs, remarked that large
percentage of the sales on the board for
considerable period had been the securities
of the Washington Railway and Electric
Company.
Without questioning the accuracy of this
statement, which none Of the members of
the board present on that occasion neither
dared to do red to do If has haap q
matter of common knowledge that during
the year the holdings of the Mutual Life
Insurance Company in these securities came
on the market, and 1t is believed that the
greater part found a market in this place.
The amount is eStim6 ted at several mill
lions, and the absorption of such block
of securities, and one of them a non-divi-
dend-paying stock, was looked upon. and
justly too, as an indication of the great
expansion Of the local market.
The operations In these securities have
however, been only one of the features of
the local trading on the exchange I'M
portant changes, perhaps not SO much in
the holdings as in the prices, have been
made in the bank stock list, which general
ly heralded some change either in the cant
taliZation of these institutions or some con-
nectlon of consequence in a business way
In the bond list, too, the market has been
active ana the buying has resulted in firm
er and higher prices for this class of Sc
cuftles, which represent to large degree
investment buying. In fact the latter Is
sometimes complained of as resulting in
Withdrawing large proportion OF the list
ed securities from the active market and
curtailing to that extent the possible bust
ness of brokers'
Some notion of the changes of the mast
Twelve months in the local stock list can he
obtained from the following connaratfIye
table, which gives the bid price for soma
1904 and 1905: