The Washington times., 1911-01-01

closed its books yesterday with no feeline
of regret at the passing of the year 1910
| To the stock brokers and to the ranI
and file In the financial district, 1t has
! been dismal twelve months, year ol
disappointment, marked by liquidation
and by declining prices, and by con-
tracing business. Yet. 1t must be ad-
mitted that in the final analysis, the
year has been brought to a close with
| record far better than at one time seem
| ed probable.
The achievements in agriculture have
been brilliant; general business, while
hesitant in the last half OF the year,
gave a very good account of itself In the
| first six months, and the volume, taking
the interval as whole, has been fair.
In fact, in any year in the country's 8
| commercial history prior to 1906, the net
results of 1910 would have been of
record-breaking proportions. Finally
stocks close, at marked recovery from
the low prices of July, and a decided i'm
provement is in progress in bonds and
investments, at the present time.
Streets Light Trade.
Cheerfulness is perhaps too much to
expect Of any group of men who have
experienced dissppointments and sus-
tained losses. and that is the case with
the stock brokers. They have taken.
and for the most part, are still taking
gloomy view Of things. chiefly because
their own business has been unsatisfac-
tory. Total stock sales for the year ap-
proximate ,769 shares Contrasted
with 214,632.1y4 in 1866, a decrease of
6O.340,425 shares. Sales of bonds repre-
sent a par value Of about s632, 0O0.0 900
compared with 81, ,297, ,SO6. 200. a contraction
OF 1855, 5000, or more than so per cent,
during the year.
OF the above figures, those dealing
with bonds are the better index or d.
minished wall Street activity, for very
heavy percentage of the stock trans
actions of the year were of professional
origin, and, as such, were of no benefit
to the commission houses. Wall Street
is blue, not only because the commits
sion account has fallen away. but also
because the capital account has dimin-
ished. The last sale of a stock exchange
seat in 1909 was at $4,000. Seats are
now selling at $4,000, a decrease of
so3, 900, and. as this affects 1,1O0 MEM
bers of the board, the total shrinkage
of membership value is S25, 100000.
Wall Streets Blue View.
In times like these when business is
dull and expenses are running on, the
members of the stock exchange. partic-
ularly the younger members and the
traders, use their seats in case of ne
cessity as a basis of credit for loans
from other brokerss The heavy shrink
age in value is in consequence, matter
Of deep concern TO brokers, for 1t Is no.
torious that very many seats are heaNi-
ly mortgaged, and this is one reason
for detection in financial circles which
Is not fully comprehended by persons
not in close touch with Wall Street.
1t seems to me that the existing situ-
alton and the future would look very
much brighter to the financial district
than it does at present, If Wall street
was not so deeply tinctured with It's
own concerns, its own dull business,
and its own poverty. The latter term Is
used advisedly, for the situation really
amounts to such, due not only to dtmtn-
ished profits, but to the extraVaganf
scale of recent Wall Street living, and
the excessive use of personal credit by
brokers who are finding 1t by no means
meet the lavish expenditures OF the
past, and who discover that II Is ol1n-
cult and unpleasant to economlze'
Troubles That Were Ayerted.
1t is only when you look back over the
twelve months, study the indicia OF
trade, and recall some Of the dire pre-
dictions OF the intervale, that you real
ize that the general situation is prob
ably very much better than Wall Street
interprets It. For instance, In the
spring of the year men were talking
panic and crisis as a possibility; every
other man was foretelling spasm in the
money market some time during the
fall. AT least two railway presidents
were predicting wholesale bankruptcies
for railway corporations. in which they
were backed up by bankers and respect
able financial journals; and the crops
were killed repeatedly.
How different has been the result.
There has been no panic or crisis, ana
no spasm in the money market, and
with the weak positions eliminated from
the stock market and general industry
proceeding along lines of extreme con-
servatism, there seems 10 be no llken-
hood of panic or crisis, or money spasm.
In fact, no one can see anything In the
future of money but increasing relaxa-
ton and the problem there bids fair to
be one arising out OF redundacy rather
than strtngency. NO very nmportant
Il
defaulted. Earnings have been surpr1s-
ingly well maintained. There have been
very few dividend reductions, and dis
bursements at this period, estimated at
sz26, ,0000 900, break all previous records
Instead of disaster, the country has
produced crops worth nearly nine billion
dollars, and II Is difficult to find a single
adverse prediction seriously affecting
fundamental conditions which has ma
terialized.
Loss of Confidence.
1t is not my purpose, and have no
Intention of denying that there have
been unpleasant developments and dis
turbing problems for the financial mar
ket, but when we consider the material
Of the year in agriculture |
and in commerce., and when we recall
how few Of the many adverse features
which were feared have developed ac-
tually, does it not appear clear that
Wall Street has suffered rather from a
condition Of mind than from condition
of fact during the year 1910? To the
person afflicted imaginary ailments are
Just as serious as genuine illness, but It |
Is a matter OF great importance in con-
sidering the recovery of the patient that
the origin and the character Of the dis |
ease is diagnosticated properly.
Wall Street has suffered and Is suf- |
ferinE from loss of confidence. The |
keynote of the financial market of the |
entire year was sounded in the first |
week of January, with the disclosure |
that the policy of President Taft, and
. - l. A.