The Washington herald., 1919-01-10
EXCHANGE SEAT
BRINGS $4,000
Holland Says 1t Forecasts
Increased and Large Busi-
ness In Securities.

When a man Is Wiling 10 pay SiU,-
900 for the privilege OF appearing
upon the floor of the Stock Exchange
and transacting business there, it Is
reasonable to assume that he is look
ing to the future, forecasting in
creased and probably large business
in the securities market. At on time
during the war a seat I'm the Ex-
change (which means the privilege of
operating upon the fioor) could be
bought for approximately $4,000.
Gradually an increase in the cost OF
seats has been in progress until a
few days ago a would-be operator
did pay a little in excess of $4,000
for the privilege OF membership.
From one point of view this is a
trifiing Incident. 1t is no more than
an investment of money in the cD-
portunitya to do a securities business.
with the certainty that should the
seat owner die while a member Of
the Exchange, his family will receive
a considerable sum of money. repre-
senting the market value Of tie seat
The Exchange market is, or should
be. the chief medium by which the
value Of securities can be fixed. and
also the means by which there can
sonal market for securities. thus con-
sttuting one Of the most valuable Of
our national aSscts
Therefore. the value OF seats Is to
some extent based upon the presumed
future course Of the securities mar
ket Should It appear as though an
increasing volume of business is like
ly to be transacted in the Exchange
then the value of the seats increase
because the opportunities for making
money are greater than is the case
IN dull times. At one time when n
so-caued boom was in progress and
shares In excess of a million a day
were dealt in, as much as s95, ,OeO was
Paid for seat Then, as the market
fell on and, especially. as operations
IN the exchange became almost nom
insl, the price asked for a seat was
reduced. Now the latest sale of a
seat in the Stock Exchange makes
IL clear that the opinion prevails that
We are on the eve of a great upward
movement in securities.
What the Crops May Cause.
The opinion appears to prevail
among those who are giving careful
study to market conditions that
should the harvests of next summer
be excellent. and especially if they be
record-makinC. then it will be inl-
possible to prevent, even by severe re-
strictiOns by the Bankers Money
Committee. the development of a very
large market for securities. 1t will
be likely to lead to speCulat ton upon
large scale, but not the kind Of
speculation that is not healthful, but
instead that which represents conf
dence in the increase of prosperity
throughout the United States
Therefore, should the crops prove
to be large. and especially should
they prove very large, the one re-
naming condition which is neces-
sary to establish before a great
movement in the securities market
can begin will have been established.
Already a pressure is noticeable
which. II II becomes unGontro1abTe,
will lead to much activity in the
securities market. Therefore the
increase in the price charged for a
Stock Exchange seat will furnish a
good demonstration of the belief
that we are upon the eve of pos
sibly the greatest securities market
we have ever known and the pay
ing of $4,000 for a seat, with high
s er charges in the course Of a few
weeks for a seat. is sure to be ac-
cepted as a symptom of an attempt
TO discount the opportunities which
Will arise when the security mar
ket aggregates more than 1000, 900
shares a day, possibly as much as
2.oe6, 600 upon some occasions. From
this point Of view a purchase and
sale OF this kind represents some
thing more than a mere personal
transaction. They reflect the opin-
ion OF those who should know that
in all probability the securities mar
kets Of the United States are to
enter upon an era of what may prove
to be the greatest activity these
markets have ever known
Some Queer Contradictions.
Many OF the leaders of the banking
world and some of The authorities at
Washington have rszentIy spoken O:
the great imitation of commodity
prices. Some of these are the high
est, ever known. On the other hand
at this time a defiation in the prices
of bonds and especially bonds of high
character is maintained, and no one
knows how long this defation will
continue 1t is also true of stocks
and there are shares dealt in upon
of which do not begin to represent
the value which is in the properties
themselves. Imitation, therefore. OF
commodity prices and defiation of the
prices reported in the securities mar
kets for shares and for bonds are in
progress ,concurrently. Should there
come great activity in the security
market. and this is believed to be
probable, then. whatever happens TO
the prices which commodities COM
mand. it is certain that the detiation
In the prices for bonds and stocks
will be brought to an end and con-
stant Increase in prices be noted until
at last these securities will fairly
well represent the real values that
are in the properties.
A World Market.
Undoubtedly when the change comes
we shall see esta blished in New York
a great market for foreign securities
of all kinds. Government bonds, rail-
road. industrial and commercial Sc
eurities are sure to be listed, if. after
Examination. they be found worthy OF
listing in the stock exchange and the
presumption Is that there will be
heavy dealings in these securities.
Those who have had long experience
b the securities market are convinced
hat in addition to the dealings in for
sgn securities large amounts of money
will be placed upon deposit in the
banks so as to provide those who buy
commodities in the United States with
adequate balances by which they viii
Easily meet their obligations. For this
reason expectation is strong that be-