Evening star., 1925-12-27
BY the Associated Press.

BY the Associated Press
NEW YORK, December 26.-Busi-
ness prosperity in 1925 was anticipated
and reflected by the great bull move
ment in the stock market. which broke
all records for volume in the history of
The New York Stock Exchange. THE
averages of 20 leading railroad and 90
leading industrial issues. compiled by
the Associated Press. cached the high
est levels ever recorded in the final
quarter of the year.
Cheap credit. resulting from the ac-
cumulauon here of huge stocks OF sur
plus gold, provided the back ground for
the advance in stock prices. which con
t1nued, with only two ma jOr interrupt
tons, throughout the year. The out
standing features of the industrial sit
uation, which also had "A direct bearing
on the price movement of securities
were the huge volumes OF freight traf-
nc, steel lngot production, ba nix clear
lnSs, building construction and auto
mobile production, al of which estab-
| lished new high records during 1925;
the absence ot unemployment and the
increased purchasing power OF the
farmer.
Better Conditions Abroad.
Most foreign developments also were
bullish in character. Chief of these
I was the ratification of the Iocarno
treaties, voluntarily entered into by
Great Britain. France. Germany. Italy
ana some of the new F,uropean reDub-
ilcS for the purpose of guaranteeing
the peace of Central Europe. The re
turn ol Great Britain to the gold
! standard and the funding of tho
Italian. Belgian. rzechosIovakian and
i;uma nian debts to the United States
tiso were regarded 10y international
h"nkers as important mIeStoneS in the
! World slow recovery from the dew
astatlng economic effects of the war.
The only unfavorable foreign de-
Nelopment, from AN investment stand
point. was the failure Of the French
government to arrange for the pay
nent of its debts to the United States
and Great Britain. and to balance its
budget. The financial difficulties for
elgn and domestic, of the French gov
ernment were reflected in the acute
! weakness of Paris exchange in the
principal monetary centers of the
world in the closing weeks of the year
Sales Records Smashed.
Total stock sales during The year
were approximately 460 900. 900 shares,
as compared with 275 600 900 in 1924
80 900 900 in 1923 and 3O1 500 900
! in the previous record year of 1873.
The largest single days trading in the
| history Of the New York Stock EX-
| change took place on November 10.
when 3.340.6o0 shares changed hands
railroad shares enjoyed unusual
! prosperity. While The gross income Of
| some roads did not mea sure up To that
J of last year. the net returns in most
, cases were substa ntiaily higher. due
| to inCrea sed operating efficiency.
| Southern roads benefited materially
! from the real estate bocms in Florida
and other States below the Mason and
| Dixon line. the southern Railway in
creaSing its annual dividend from &
| to 81. New England roads also made
/ substantial recovery from the depreS-
! sion OF the past few years the New
| Haven showing small return on its
| common stock for the second time
since 1917. Shares of Southwestern
! roads were bid up sharply in antici-
! patton of early cOnsummation of pend
| ing mergers.
Factors in Railroad World.
! The recovery in the shares of North
/ western carriers was rather slow. Aft
! er a bitter struggle between opposing
! factions of securities holders. a com
| promise plan was reached for the re
! orga nization of the Chicago. Milws IL
| kee and st. Paul Railroad, which went
| into receiVerShip as a result of over
| expansion and The competition af-
| forded by the Panama Canal. Securi-
| ties Of the new Nickel Plate" syS-
| TEN rose TO record high levels in eN-
| pectation of an early approval of the
proposed consolidation by the Inter
state Commerce commission.
Strength of the steel shares APP
| parently was in anticipation OF lar
ger earnings next year. rather than
| = reflection of current returns. as the
| margin of profit for many companies
| was relatively small because Of the
| low prices prevailing in 1925. Tn