The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1928-04-13

Editors Note-The wild orgy
Of trading in the stock mar
ket recently that has doomed
values Of certain issues far
beyond all previous limits COM
prises the most interesting, the
least understood and probably
the most vitality important news
story of today. In the follow
ing article for The Tribune and
NEA Service, Richard Spillane,
noted financial writer, describes
the extent to which the trading
has gone.
BY RICHARD SPlLLANE
Copyright, 1928, NEA Service, Inc
New York, April 13.-Some things
N connection with the present stock
market are enough to stagger the
imagination. There has been an ad-
,ancc in the appraised value of
some Of the leading issues beyond
anything in the history Of invest
alcnts or speculation.
Take General Motors, for exam
pie. Its gain from lowest to high
est within the present year has been
So points. As it has 100000
shares Of common stock outstand-
ing that would mean, in market ap-
praisement, an increase in value OF
$1,000, 900, 900.
AS the United States Steel Cor
poration, once the most gigantic of
all corporations, has only 7,116,235
shares outstanding and sells around
l48, it would appear that the in
crease in market value alone Of Gen.
eral Motors in the present year is
greater than the market value Of
the total stock issued Of United
States Steel.
Twice Value Of Wheat
Or, to measure the enhancement
in value of General Motors by an
other yardstick, consider the grain
crop-that Of wheat, for example.
At the price of wheat today, the
growers of that great essential to
our life will get about 500, 00O, 900
for their crop, or . little more than
half of the rise in value Of Gen.
cral Motors in three months.
Consider cotton. The crop ap-
p-oximates 100000 bales. The
average price to the grower i,cs
been less than 10 cents per pound
$50 a bale. The increase in market
value Of General Motors in three
months was more therefore than all
the cotton growers in the south will
get for the yield Of their crops.
Then consider the Radio Corpora
ton of America. It pays no divi-
lend on the common stock. This
stock sold last year at Il 1-8. 1t
sold recently at 169.
Greatest Gains in History
A score of illustrations Of re-
markable gains in the last three or
six months might be given. Nothing
comparable to such increase in mar
ket value Of so many various issues
las been seen in peace time in this
lat..cn.
What is the explanation? How is
It ;nat stocks doomed when business
o.. ously is not holding good and
al unusually large unemployment.
Is reported east and west? Where
...-2i ell the buying come from ?
.ow much Of it. is professional and
low mucl comes from the small
r.:
Y, one has the means or the
lua!.. 'ica.ion, so far Is we know,
or getting accurate figures as to
ne PERCENTAGE Of stock exchange
'Isiness that is professional, and
MAJ proportion is what is called
pubic. But the total Of the un-
professional is colossal. Less than
5 years ago the amount Of bust
ness that came from outside of New
lorE was very small. Today some
# the so-called wire houses have
rom 20 to 90 branch offices. The
ration is horcycombed with branch
offices of New York brokerage es-
Ablisrcmnts.
An Order q Minute
One establishment has q special or
orivat, wire to Havana. Orders
from Europe received by cable by
sarious banks average one . min
ute for every minute from 10 .. m.
70 3 p. NJ. These orders do not deal
wholly with stocks but with bonds,
with exchange, and various other
departments of finance. Some bro
keragc houses have Is many as
twenty branches within the city Of
New York.
There is nothing in financial his
tory to approximate the growth in
Stock Exchange transactions. To
play the market" has become . ma
tional mania. II you are Of Wall
Street, the barber who slaves sou
is Liable to ask what you think Of
this or that stock. He will take Z
tip on a stock more gratefully than
money tip.
A doctor of prominence puts in
most of his time between 10 and 3
il brokers' office and his patrons
must visit him before 8 or after 3,
although without his ministrations.
unrrnlbercd women are In the