Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-05
SEE BRIGHT FUTURE
Wall Street Brokers Encour-
aged Over Coming Year.
DIGEST RECORD OF 1912
Story of Progress Throughout Every
Division Of Activity Told.
AVAILABLE SHARES SHORT
Volume of Securities That Came on
Market During Period of Liq-
uidation Dwindles.
BY w. G. NICHOLAS.

NEW YORK. January 4-The street
is digesting the amazing record of
1912. and taking courage afresh to face
very bright future. The statistics
thatare filling the columns Of the daily
and financial press are imposing in
their magnitude. They all tell the
same story of wonderful progress
throughout every division of activity
industrial, financial and commercial
The new year is entered upon with un-
usual prospects Of a continuation of
the era OF good times that set in about
six months ago. and has progressed
without interruption down to date.
feature of the stock market as it
now presents itself is the light floating
supply of shares available for specula-
tive short selling The enormous
volume of securities that came on the
market during the period of liquida-
ton, which began around the LIST of
November. has dwindled to small pro-
portions, so far as the professional OBJ
servers can determine. Where has the
enormous supply gone. is the question
that is now holding the attention of
everybody in Wall street. 1t has either
gone into the hands Of the public. or of
strong concentrated interests. 1t is a
fact that the public has not absorbed
as freely as a good many people would
like to make themselves believe. The
generality of commission houses and
brokers agree upon this point. There
Is always a quiet buying of stocks and
bonds during periods Of depression, but
1t has not been going on Of late in a
very impressive way. The prevailing
disposition among the small investors
has been to hold off. 1t is very doubt
full If the number of actual sharehold-
"
days ago. The conclusion is therefore
general that very rich combinations
and interests are under the market"
to the extent of locking up any over
supply which might otherwise embar-
rass the situation and prOlong the un-
certainty of the public.
The gamble is at the present moment.
Will the big interests let prices down as
which to float new issues Of securities.
or will they hold the market steady
around current levels until the inflow
of money supplies the necessary raw ma
terial for campaign for higher prices?
The bulk Of opinion leans to the latter
theory. The automatic inflow of money
for ten years or more with a single eX-
ception) has been at the rate of about
$1O.OCO.O00 week for the five weeks fol-
lowing the first week in January, and
there is no reason to believe that the
tendency will be changed this year. The
period of visible money relaxation in this
center usually dates from about jan
uary Is and continues until nearly mid
summer. BY that time crop prospects
take form and speculation Is influenced
by the agricultural outlook. Apparently
there Is no good reason to anticipate rad
ical departure from the customary jan
uary routine in the action of large bust
ness affairs The problem before the
ruling combinations in the banking and
business world is how they can direct
the forces to their best advantage and to
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