Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-01-01
ARE HIGHER
Average Is Better Now Than
at Beginning of 1912.
INCREASE IN STOCK SALES
BY End of October Daily Record
Equaled 1,000,0 Shares.
SOME DRAMATIC CHANGES
Not Confined to Speculative Issues
or the So-Called promo
ton" Stocks.
SOME DRAMATIC CHANGES
BY w. G. NICHOLAS.

NEW YORK. December 31.-Altnough
the stock market underwent the painful
experience of at least two periods of Sc
rious depression and wholesale liquida-
ton. prices at the close of 1912 average
considerably higher than at the begin
ming of the year, and conditions have
in every way improved during the twelve
months of history making. The low
prices in January and February were
caused by keen disappointment over the
failure of generally prophesied bust
ness boom, to begin after the turn of
the year. Instead of which the real
change for improved conditions did not
begin to be felt until May and June,
when crop prospects became bright and
an industrial revival took tangible form.
The stock market had a measurable i'm
provement during the midyear. With de-
liberation of movement and frequent re-
actions. it continued to gain ground.
BY the end of October big. broad
speculative boom had eliminated, with
daily LOCO, OO0-share records on the stock
exchange. The whole country was ex-
cited over the demonstration. The crops
had turned out better than estimated and
the weather was phenomenal for saving
and distributing the products of the soil.
traOrdinary prosperity in agriculture
Commercial reports We're encouraging
from every quarter, and at last the
railroads reflected the splendid business
developments. For the four months past
they have been under the severest strain
ON record. They have been carrying
more tonnage than ever before and earn
| ing more money. The bulk of the increase
| in revenue went into enlarged pay rolls
| into equipment. into taxes and into way
and structure" Excepting in few cases
stockholders are not directly benefiting
| by increases in dividends. More rolling
stock and heavy expenditure for track
and terminals are and will continue to be
| the feature of railroad management for
| the next two or three years. Several hum
bred million dollars will be spent that
way in 1913. 1t will comprise the bulk of
the new financing.
| The stock market was slow during July
and August. but at a substantial advance
| from the break of January and Febru-
airy. and as crop after crop passed the
danger line and turned to be bumper
the general situation hardened.
Market Boom Is Checked.
| The stock market boom of the autumn
months was checked. for several reasons,
and during November and until about
the middle of December the course of
values was downward. From half to two
thirds of the boom prices We're lost. the
| shrinkage ranging from :, to % points.
Vast capital is always needed to finance
Wall street when the stock market is
| in a speculative mood for the RISE. and
when there is urgent demand simulta-
neously for money with Whlch to move
the crops and other SO-called Legitimate
| PURPOSES Wall street must take a back
| seat AS between the legitimate and the
speculative gambling. some call it, the
latter must suffer. That is what hap
l fit-n low o. 4 liz,
current calendar year. An improved
stock market situation is reflected lat
terly by moderate price recovery in a
majority of issues. although the average
is still long way from the extreme top
| quotations established just before the
bankers began to put on the screws by
raising interest rates and calling loans
on stock exchange collateral, TO the ex-
tent of several hundred thousand shares.
simultaneously Europe worked itself into
| a state of INSTRUMENTATION over the
| Balkan Turkish outbreak and from every
| fiscal center of the old world came a
flood Of American securities. An entirely
mistaken idea that the railroads had lost
out i'm the wage controversy with the en-
pjneers was also depressing feature.
Still later. the Supreme Court decisions
| IN the anthracite coal and tnion-SOuthern
Pacific cases came along. These findings
were eXcitants. rather than decisive for
the rise or fall in stocks. AS general
|proposition the result was disturbing to
| the minds of investors and bankers, az
we'll as mere traders.
| Remembrance of the effects of the
earlier decisions by the Supreme Court
| for the dissolution of trusts and the regu-
| lation of big interstate business was
quieting in sense. 1T could not be re-
called that in cases where large interests
were involved there had been the slightest
sacrifice of values: no confiscation; no
| financial or property butchery. On the
contrary, the record showed that in every
instance market prices had increased in