Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-14
MEN AND MONEY
By NJ. S. Rukeysev.
tCopyriRht. 1877

Record break prices for seats on
the New York Stock Exchange bear
no correlation to the intelligence or
the newer membership.
Recently newcomers at the whifl-
pool of speculation At the intersection
of Broad and Wall streets. the new
financial center of the world, have
paid as hish as $I15. 600 for privilege
of entering the Stock Exchange trad
ing floor In $50 the same privilege
was bought for as little as 81, 600, Al nd
In 1914 AS low as &s4 900. For decades
the total membership has been limited
to 1.fNa. despite the enormous eco
noflaic growth of the country during
thisspefiod. The price of memberships
rises as the business .in securities
transacted on the exchange becomes
larger in the volume and the commits.
sion for the execution of every hun
dred-share order rises.
The broadening of activity in the
last two or three years has been a
phase of the high level of prosperity
and bull markets. The demand and
supply of capital are greater than ever
before in the past, and listings on the
Stock Exchange, embracing about
= 1,134 corporations. are at A new sum
NIT. Americas new role al a creditor
Nation has enormously increased the
listing of foreign securities since the
war.
Have Larger Public.
Brokers have more securities to deal
in than ever before. ana a larger pub
lie interested in investments than in
the past. Moreover. the public inter
est is reinforced by increasing per cap
ita wealth. Moreover. in the last Ave
En hnk
has been more effective than In the
past, and small accounts that were
Formerly In the hands Of swindlers are
10 an increasing extent drifting into
legitimate channels and swelling the
aggregate volume. These are factors
which contribute to the bidding up of
prices of seats to unprecedented levels.
High prices, however, are not acting
as selective influence tn bring men
OF extraordinary capacity to the ex-
change. AS matter Of fact. some of
the old.time leaders feel that the aver
age of f1na ncial skill and economic
knowledge on the part OF the member
ship has been declining.
AS a general rule. the ablest partner
of stock exchan brokerage firm II
no longer the floor member. although
In the somewhat distant past the re
verse was frequently true. The bust,
ACSN VI DlOkSTdSe, WHICH III HldHN
cases has been linked up with invest
ment banking, has expa nded no much
that usually the principal partner
finds it desira BILE to be at the Office TO
pass judgment on the problems that
arise, to determine policies, to super
wise the orga IMITATION and to initiate
new ideas. Usually junior partner
Is staked for a stock exchange seat.
which, though nominally the unmort.
GO af "a inAfx,tAnral
Der, is usually. as rsult OF gentle
mans agreement, an asset of the firm.
In many instances the floor member
is little more than glorified clerk
a graduate from the ranks or bright
page boys. Although the technique
of brokerage requires skill and adapta4
bility, it is more or less mechanical
and does not call for genius or for
men endowed with exceptional eco,
nomic insight.
Membership Qualifications.
AS a general rule, it is perhaps fair
20 say that the very best brains of
Wall Street are not enrolled as active
members of the exchange. This is not
to say, of course, that the membership
does not include some conspicuously
able men. The best talent is included
among the 40 governors of the ex
change. The management of the
board gets the active cooperation of
partners of members who act through
the Association of Partners of Stock
Exchange Firms ~
The Stock Exchange has always
felt pride In keeping its membership
open to all men of good character
over 81 years of age There is. senti-
ment in some quarters for placing adj
ditional qualifications for admittance
to membership-tests of intelligence
and of knowledge of the fundamentals
of finance. 1t is, however, not likely
that such barriers VIII be erected-at
least in the near future.
With women entering the financial
field to an unprecedented extent, Ii Is
surprising that no woman has ap-
piled for admission to membership in
the Stock Exchange. The Stock Elk
change constitution raises no barrier
of sex. However the idea of a lady
member would shock the sensibilities
of the conservative officials of the
exchange. In wild, excited markets,
such as prevail on days of important
news developments-the session pre-,
ceding the recent announcement OF
the 40 per cent stock dividend OF the
United States Steel Corporation IL
case in point-a desire to be chiva1-
rous to a female colleague would
cramp the style of the members.
Might Slow Bartering.
Service to customers involves head
long rushes from one trading post to
another. ana ballroom politeness
might slow up the processes of bar
ter At present, the facilities of the
exchange are eeared up to heighten
speed in the execution of orders. An