Evening star., 1928-04-20
Wall Street.

An tDOlCSbf0n Uk NAAS dAhPAVNSNShNN~A
volume of trading on the New York
Stock Exchange is afforded by the an
nopucement that on Thursday seat"
in that body was sold at q new record
price of $Se5, 900, an increase Of $4,000
over the preceding quotation. There
are !. 100 seats on the exchange, and at
| the rate of the new sale they have at
present 4 market value Of $4S4,S0O0 00u,
Thursdays seat price advance having
added So, 900 to the former value.
The reason for this extraordinary ad-
vance In the price for the privilege OF
trading directly on the floor Of the ex-
change is TO be found in the record
breaking activity Of the stock market
During this current year of 1928, nom
January to the close Of business on
Thursday, the stock sales OF all kinds
totaled 24l, $50, ,9s9, an increase OF more
than eighty millions over the same
period of year ago. This increase OF
eighty million is alone greater than the
total volume Of trading during the
same period four years ago, when only
20. $50. .564 shares changed hands, Four
million-share days have occurred fire.
ouently during the past few weeks,
while three -million-Share days are now
commonplace. The commissions on
this great volume Of trading make the
brokerage business a highly profitable
one. and the advantage Of immediate
floor membership is such as 10 cause
spirited competition for seats.
Al the present rate of increase the
volume of business on the New York
Exchange would in five years become
overwhelming. II is not, however, ex-
uected that 1t win continue at this pace.
In fact. there is limit to the amount
of action that can be had on "'change"
within the restricted hours of trading.
five in number. This great increase
has been due to transactions in larger
units. Ten-thousand-share lots are
not uncommon in the trading in active
stocks. But the higher the number OF
shares handled the greater the volume
of cash or credit required. and although
there is at present an abundance of
money. this acceleration Of business
cannot possibly 60 On without check.
Indeed certain checks are being inter-
posed BY the banks. which from time to
time increase their interest rates on
call loans as q means Of curtailing the
outflow of borrowed money or. rather,
extension Of credits. AS a matter OF
fact. the market-rate values dealt In
daily on the exchange exceed greatly
the actual amount Of cash available.
That there Is some danger in this ex-
tension Of credits for what Is in the
main speculative market activity is
recognized. Some untoward happening.
suddenly checking the upward trend OF
the market and shaking public conf
dence in the continuation Of prosperous
conditions. might precipitate a shock
ing deflation OF values and rapid fall
in price averages. There is, OF course.
q certain percentage Of strictly invest
nent buying in the market today, high
as ii is. but obviously the major part
Of the transactions Is speculative In
character. The average yield In divi-
oends of the stocks listed on the New
York Exchange is. II has been stated
recently, only about two per cent. which
does not constitute . good investment
market on the whole. though there may
be some speciaIties which stu offer
attractions to the investor through the
prospect Of higher earnings leading to
extra dividends or TO stock increases,
commonly called melons"
wall Street has been heretofore
styled a faithful barometer Of national
economic conditions. 1t IL, however,
subtec. TO arrangements. The higher
the pressure to some minds the greater
the risk Of continued trust in uninter-
rupted financial sunshine.