The mirror., 1916-12-21

Curb market has been the practice of max
ing what are known as ''wash sales. This
is scheme usually adopted by the pro-
moter of new enterprise or ''bull pup"
as it is colloquially called, by which there
appears to be thousands of shares of his
stock changing hands daily, thus making
his stock fairly conspicuous, with the re-
suit that the public gradually begin TO bite
and finally take over and digest large blocks
of it. Thomas w. Lawson, of Boston, is
one of the most spectacular operators who
has adopted this means of hotation, nota-
bly, in the case, first of Amalgamated Cop
per Common and later in the case of his
numerous mining ventures, such as Yukon
Gold, etc.
| This scheme consists in employing
number of curb brokers to buy and sell to
and from each other, back and forth, over
and over again, the same individual blocks
of stock, charging, of course, their regular
commission on each alleged valid transac-
ton. No actual delivery of stock is ever
contemplated and none is ever made. Thus
at the end of day it might appear from
the Curb reports that one hundred thou
sand shares of, say, Porcupine Gold had
been traded in and the price of the same
advanced considerably, whereas in reality
probably not more than one hundred shares
of real stock had actually changed hands.
| bom cin
the panic of 1907, although not completely
successful in stamping out this fraudulent
practice, has greatly curtailed its use. In
fact as the years 60 by and the Curb be-
comes more and more thoroughly organ
lied, it is ceasing to be such an anomaly
and is approximating, in its own peculiar
way and sphere of action, the solidity
of the big exchange. The past year or so
there has been movement on foot among
the members to secure an exchange buile
ing of its own, which would do away with
its picturesqueness, but for various reasons
the big exchange has threatened to boycott
it if they did so, and as the Curb is de-
pendent on the big exchange for a very
large volume of its business, it seems that
in the future the Curb will continue to
conduct its business out in the open, under
the blue sky of heaven.
l have tried in cursory manner to de-
scribe the physical and mechanical con-
structon of the New York Stock Exchange,
its memberships, its means of connection
with the rest of the country and its manner
of operating, all of which places Wall
Street in position where it has become the
money monitor of the United States. In
conclusion it may be asked, have we any
reason to expect that in time it will be
able to add to its importance by actually
usurpipg the proud distinction, now occu-
pied and for many decades firmly held by
Lombard Street, England? Is it gradually
| becoming the financial center of the world?
| Some financial papers, since the begin
ming of the world war, are loudly pro-
claiming that the American dollar has al
| ready practically superseded the English
pound as the recognized medium of for
eign exchange. Others state that the Uni
ted States is the richest country in the
world and SO, of its own momentum, is
bound to eventually supersede England.
This is a stupendous question, in the sol.
wing of which the duration of the present
war will play no unimportant part. But
although it is absolutely impossible for any
one to forecast the future in this regard,
yet in arriving at anything like definite
conclusion there are some salient and in
| teresting facts that may serve as basis for
our guidance.
In the first place in Great Britain the
capitalistic era originated almost quarter
| of century and half ago and by reason
| of her early start and command of the seas,
she obtained a tremendous start over all the
| other countries in the world in her accumu-
lation of the worlds capital. 1t is stated
that today her vast national debt, running
into the billions and increasing by many
millions each day, is but about equal to
her annual income. Think of it, Thanks
to the antiquated shipr ing laws of the Uni
ted States, which she seems loath to change
for some inexplicable reason, Great Britain
at the present day not only commands the
seas but she has practical monopoly of
the carrying trade of the world. Her huge
annual surplus is invested in enterprises all
over the world and these return her mil
| lions in income, while it is fact that the
United States has always had to seek for
eign capital to finance her large under.
| takings, most of which has been obtained
in England.
Again so far as Europe is concerned,
| strange as it may seem, by reason of the
stringency and weight of national taxes,
which had reached staggering proportions,
even before the war, European securities
were always largely held in London, where
they escaped these continental taxes. 1t is