The Birmingham age-herald., 1919-01-14
PRICE OF SEATS ON
 STOCK EXCHANGE
By HOLLANDs

man is wiling to pay $70O00 for the privilege of appearing upon the floor of ! the stock exchange and ansacting bus
 mess there, it is reasonable to assume that he is looking to the future, fore casting increased and probably large business in the securities market At one time during the war a seat in the ex- change (which means the privilege of operating upon the floor could be bough. TOT approximately s5o,o00 Gradually an increase in the cost Of a seat has been III progress until few s>.ys ago a would De operator did pay a nutle in excess of $o0O for the privilege of membership From one point of view this is trifling incident. It is no more than an invest iheht of money in the opportunity to do d 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, le- presenting the market value of the 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 be secured a | Tree, liquid and imlsersonal market for securities, thus constituting one of the | most valuable of our national assets. ] Therefore the value of seats is to some extent based upon the presumed future ; course of the securities market. Should 1 1t appear as though an increasing voS-
 ume of business is likely to be tran sactel l in the exchange then the value of the ! seat increases be- Aiuse the opportunities TOT making money are greater than is 1 the case in dull times. At one time when
 so-caled "boom' was in progress and shares in excess of q million q day were dealt in, as much as $95,003 was paid for
 seat, Then, as the market fell off,
 and, especially, as operations in the eX-
 change became almost nominal. the price | asked for seat was reduced.
 The opinion appears to prevail among | those who are g.ving careful study to | market conditions that should the har
 vests of next sumuer be excellent ano ! especially if they be record making, then
 it will be impossible to prevail even by 1 severe restrictions imposed by the bank
 CTS money committee. the development
 of a very large market for securities 1t
 will be likely to lead to speculation upon | ss'farge scale, but not the kind of specu- ] ation that is not healthful but instead that which represent confidence in the ! increfse Of prosperity throughout the ] United States.
 Therefore. should the crops prove to | be large, and especially should they prove | very large, the one remaining cond,- 1 tion which is necessary to establish be- 1 fore great mov ement in the securi- 1 ties market can begin will have beyl established. Already pressure Is notce-
 able which, if it becomes uncontrolla ble. will lead to much activity in the securi- l ties market. Therefore the increase in the price charged for stock exchange seat will furnish good demonstration of the belief that we are upon the eve of possibly the greatest securities mar ket we have ever known and the pay ins of $70,000 for seat with higher charges in the course of 2 few weeks for | q seat, is sure to be accepted as q symp- ton of an attempt to discount the oppor-
 tunites which will arise when the se- curities market aggregates m+ce than million shares q day, possibly as much
 as 2,GO0,000 upon some occasions From this point of vies purchase and safe of this kind represent something more
 than a mere pc. sonal transaction. They reflect the oppinion of those who should know that in all probability the securi- ties markets of the United States are to enter upon an era of what may prove to be the greatest activity these markets have ever known.
 Many of the leaders of the banking
 world and some of the authorities at Washington have recently spoken of the great imitation of commodity prices Some of these are the highest ever known. On the other hand at this time defG- ten in the prices of bonds and especially
 bonds of high character is maintained, and no one knows how long this defla-
 ton will continue. It is also true of stocks and there are shares dealt iii upon the securities market the quotations or which do not begin to represent the value which is in the properties themselves. Imitation therefore of commodity prices and deflation of the prices reported in the securities markets for shares and bonds are in progress concurrently. Should there come great activity in the security market, and this is believed to be proba- 1 ble, then whatevs happens to the prices I which commodities command it is certain | that the deflation in the prices for bonds 1 and stocks will be brought to an end and | constant increase in prices be noted untll 1 at last these securities will fairly well
 represent the real va'ues that are in the 1 properties.
 | Undoubtedly when ts. change comes | we shall see established in New York a great market for foreign securities Of all kinds Government bonds. railroad, in- dustrial and commercial securities are
 sure to be listed, if after examination,
 they are found to be worthy of listing l in the stock exchange and the lH'esump-
 ton is that there will be heavy dealings
 in these securities. Those who have had
 long experience in the securities market | are convinced that in addition to the dealings in foreign securities large | amounts of money will be placed upon de- l posit in the banks so as to provide those who buy commodities in the United States with adequate balances by which l they will easily meet their obligations. | For this reason expectation is strol<. l that will be carrying upon deposit l banks will be carrying upon deposit l large amounts of money which have
 bed sent here by citizens of other na- l tons The government at Washington | and the leading forces in the banking and.
 financial world, all speak with high ap- | proval of the investment of American
 money in foreign securities which have been and will be listed upon the stock ex- change and also further investmen -s made abroad. By this means a reason able method will he furnished whereby ] foreign countries can begin to pay their
 obligations to the United States. Mean