Evening star., 1931-12-27


in Broad street. at
the sufferance of John A. Crone.
the city, while to-
day they owe less than $l000,000 on
a $7000,000 edifice containing the
most modern security trading facilities
in the world.
One world record was set as the
curb market on September 81. 1881,
became 1.-The worlds largest foreign
Share> market when the London Stock
Exchange closed, following Great Brit
aims suspension of gold payments.
Other curb market records estab-
lished during the year included: The
widest bond and share price declines;
largest number of new low quotations
in a single session, established Septem-
Der 81, when 232 stocks hit minimum
marks; the biggest bond day, May IL,
when turnover was $6,02S 900; greatest
monthly bond volume, in October, with
s91, ,637 600; highest number of divi-
dend-paying stocks, 1,505, or about IS
per cent of the active securities, as
such issues predominated in new list
ings; the most penny shares in six
years, as the willing of market values
lifted this group from a record low of
18 in 1880 to more than 200 and total
securities listed at new peak Of more
than 5000. of which around 2,400 were
stocks and $50 were bonds
More Cash in Market.
Despite chaotic investment condi-
tions, the amount Of cash poured into
the security markets during 1881 ex-
ceeded that of 1880 or that of pros
porous" 1923. The exact figures of this
net addition to the general investment
fund, which comes out of savings. ap-
proximate S9.500000,00 000 This may be
obtained by taking the difference be-
tween net new financing, j. e., financ-
ing which excludes refunding opera
tionS, and the minimum known secu-
rity loans, which are compiled by
adding Ca) security loans of reporting
Federal Reserve member banks in lead
ing cities: Cb) loans to brokers for
others, as reported by the Federal Re-
serve Board, and Co loans from others
as reported to the New York Stock
Exchange. These differences, or he
actual cash poured into the security
markets. were S9,l28.000,000 in 1880
and S6l04 900 900 in 1928
Short selling. except in the market
leaders like Electric Bond g. Share
Standard Oil Of Indiana, Cities Service
and American g. Foreign Power, played
a minor role in depressing market val
ueS, because rs per cent of the dealings
on the worlds primary security mart
are on cash and carry" basis.
The present depression is unique in
that for the first time in more than a
half century British, Scottish and
Dutch investors did not come into this
market to pick up securities at debated
values. On the other hand. they were
compelled to dispose of large amounts
OF their American security holdings.
The curb market of 1881 started at
the extreme low level reached at the
1880 year end, but moved up gradually
measured by the fluctuations of the q
most active stocks on the exchange
until it reached a peak on February 28
This represented a gain of 81 per cent
above the levels on the first day OF
January. On February 26 decline SET
in which lasted until June 2. during
which period stock values suffered a
loss of 38 per cent.
Between June and June 26 the
market staged rally which netted 2219
per cent on the upside More than
quarters Of the gain took place
between June %, the first market day
after the Hoover moratorium proposal
was announced, and June 26. On the
latter date an irregular decline started
which lasted until October s. with a loss
between the two dates approximatinc Al
per cent. Between October 6 and No.
vember 9 the market gained almost a.
per cent, but slipped again and lost
slightly more as it entered anothe,
doWnsWing on November 10. The mar.
ket IN December was down So per cent
from Its peak attained on February 26
Utilities Rank First.
Ihe makeup of securities traded ir
throws light on curb-market move.
ments. OF the 2,400 stocks about Ar
are public utilities. about 300 are mines
around 300 are oils and there are more
than 100 management type of invest.
ment trusts. Foreign shares and in.
dustrlals form the bulk of the remain.
ing 1850 stock issues. The curb, there.
lore, is a peculiarly sensitive baromete,
for all these types. '-0'N'
PUBIC utilities, preferred as we'll a,
common Shares. bulked large in thu
Cotal traolng volume and f1uctuatec
WHEY. Elght OF the twenty-five mos
acIiVe common stocks were public utili.
stes, anu 10 OF the most active preferred
w. PNbi1S ullllLleS,
The public utility industry main.
tanned dividends, as carvings beId a, ~
well. Electricity output was off only :
per cent from 1880 and gross reven,,ot y
from sales to consumers were dowr
only about S100OOO,OOO. Natlmal pas
because of the oil glut and carbon
black curtailment, as we'll as the pen.
eral depression and the mild Weafhe,
OF the l930-31 Winter, showed a de.
cine In sales and revenues. But nat.
ural and manufactured gas toeethe,
showed reduction in sales of only
per cent and a decline n revenues an.
proxlmat1ng per cent. Local trans.
Portatlon revenues were down 10 ne,
cent. Telephone profits were main.
talneo and the stocks, until the last few
weeks OF the year. when they yielded
generally stood out because of the firm.
ness OF their quotations.
:. Despite its good showing, public util.
!ty securities suffered severely from
nquldatlon by holders who had pur
chased these stocks at 1929 peak levels
traders fears of Government regulation
liquidation by banks and from the ham
mering by shorts"
Electric Bond 81 Share may be cites
as an example of the way the close re.
latlonshlpS of great groups of power
and light companies had depressins
market effect. The company had
turnover exceeding 100000 share.
during the year.
Electric Bond g. Share typifies tn,
management concern and directly con.
trols American & Foreign Power, it.
chief foreign operating unit; Electric
Power d Light and American Gas &
Electric. Its affiliates include American
Power & Light and National Power &
Light. Electric Bond q Share has 6
minority interest in Commonwealth &
Southern, American Superpower ane
United Corporation.
Three Glasses Of Stock.
This market leader has three classe.
OF stock, all on the curb-common, ST.
preferred and $6 preferred. American
& Foreign Power is represented only b,
option warrants, but Electric Power &
Light, besides having its second prefer.
red and option warrants, has the Junior