Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1907-09-17
WALL STREET AND THE PUBLIC

WALL STREET AND THE PUBLIC.
Enormous Tribute Is Laid On the In
dustries of the Country.
1t costs the public an immense sum of
money to maintain a stock market for
the benefit of the manufacturing con-
tingent and It's numerous sales agen-
cies.
In its crystallized form the market
is represented by the New York Stock
Exchange an unincorporated associa-
ton having a membership Of LOO
men. Seats on this exchange have
sold for $95,00O each, making a total
valuation Of s1O4,5OO.0OO. The present
quotation Is a few thousand dollars
less, but 1t is likely ere long to cross
500, 100000. Aside from a life insur-
ance provision Of $4,000 the value of
seats on the stock exchange Is pred
icated on what they can earn for
their owners. That they should COM
mand $4,000 each must be accepted
as conclusive evidence that they are
worth that much. Allowing ten per
cent as a minimum return on person.
ally directed active capital, single
membership may be rated as having
an average. income value of $1,000 a
year or $1O,45O,OOO net for the entire
membership.
AS matter Of fact, $1O,450,0O0 an
nually is only tithe Of what the pub
lie pays the members Of the New York
Stock Exchange. In commissions and
interest alone 1t .pours into the ex-
change every year not less than $780,
1000 an average of $54,545 per men,
ber. This vast sum Is contributed
purely for the privilege Of playing in a
game where the chances are heavily
against the players. To employ q
gambling comparison, it may be said
in truth that the New York Stock Ex-
change bears the same relation to the
speculative public that the kitty
does to a poker game where there Is
a "rake-off" on every pot played. /
large number Of my readers will un-
derstand this illustration If accen-
tuated by the further explanation that
such a "rake-off' Is almost conf1sca-
tory, and that six men engaging In
such a game with 800 each will all
get up broke" at the end Of the ses-
sion Of moderate duration. So 1t is
with those who "sit into the game" Of
speculation as played on the New
York Stock Exchange. Their contri-
buttons to the "kitty" are bound to
extinguish their capital unless they
have unusual means Of replenishment
and an inexhaustible income from 9TH
er sources.
Wall street has also been described
as a "Tollgate in the Highway Of
American Progress" levying an mex
orable tribute on all enterprises OF
magnitude. There Is truth in the f1g-
ure Of speech.
Every big financial thing has to go
to Wall street for money and for Gre
dentials. Without the proper Wall
street 20. K" corporation proposing
to issue securities for general invest
ment lacks the brand of legitimacy
emitting 1t to respect and confidence.
People may rail at Wall street and
denounce 1t as a nest Of swindlers and
IS being wholly and irredeemably bad,
hut 70
property. to get the right treatment
from the public, must come from Wall
street and carry Wall streets express
ed approval The public curses Wall
street and then inconsistently jumps to
the conclusion that there must be
something wrong with a corporate is
sue that cannot show the Wafl street
mark of friendly Identification. To
get the right kind Of a send-off any
sort Of corporate proposition must
submit to Wall street inspection and
to Wall street taxation.
There Is a harder name for it
blackmail.
The Wall street life of a Spectator
Ia said to average less than three
years. This may be regarded as en-
tirely reasonable, when the specula-
tors pay directly into the kitty" In
the items Of commissions and interest
S60,OO0,OO0 year.
To the $6O,O00.0OO annual contribu-
ton to the Wall street kitty" add $780,
900, 900 to s1OO,OOO,OOO lost every year
ir the oft t-recurrlng "shake-outs and
on top of that figure a steady average
, Early loss of $75OOO,0OO to 100000
900 chargeable to bad Judgment and
freeze -outs," and a fair estimate may
be reached of what 1t costs the public
to support Wall street-a grand total
Of approximately $250,00O,OO0 every
twelve months. The S5,OO0,000 people
composing the population Of the whole
United States do not pay much more
than double that sum for the support
Of the national government, the main
tenance Of the naval and war estab-
lishments. the postoffice, the custom
houses, the Federal Judiciary, and the
innumerable incidental expenses Of the
civil structure. Wall street comes
high. but 1t seems to be indispensable.
Magazine.
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