The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1932-01-02
CURB FOLLOWS
OTHER MARTS
IN DOWNSWINC
Sales Volume SlumpS as
Leaders Reach New
Low Figures.
BY WAYNE C. BUTLER
United Press Financial Writer

NEW YORK, Jan. 2.-Prices in
the New York Curb Exchange dur
ing 1881 experienced unprecedented
declines and late in the year
reached the lowest levels in more
than a decade in common with the
drastic dehation in other security
markets.
The worldwide scope of the pro-
longed business depression, de-
moralization of commodity prices,
the downward trerd of stocks on
the big board" and a number Of
contributing influences such as fail
ures of banks and brokerage houses
caused speculative sentiment to re-
cede to very low ebb.
A few short-lived rallies occurred
during the year in sympathy with
upturns on the stock market, such
as the Hoover moratorium rally and
the brief upswing which followed
formation of the National Credit
Corporation, but during the greater
part of the year prices continued
to sag.
Sales Volume SIumps
Publication of poor earnings re-
ports by major corporations and
unfavorable dividend actions on
many stocks gave impetus to the
decline. A fresh wave of selling
swept through the market in the
first part of December, forcing al
most every active stock on the board
to record low levels.
Volume of dealings slumped con-
siderably. Total turnover for the
year Appropriated only 115,O00,0OO
shares, slightly more than half of
the 1880 total.
This decline in volume was re-
flected in a corresponding drop in
the price of curb memberships,
which fell to $4,000 in October.
Forty-one memberships were trans
ferred, against fifty-four in 1880.
Despite the continued defiation of
prices, the number of issues traded
on the market did not depreciate,
and at the end of 1881 stocks ad-
mitted to trading totaled more than
2,400, both domestic and foreign.
There were 263 stock issues stricken
from the list during the year, but
new admissions practically offset
this loss.
Because of the prevailing dull
trading, the money post established
in 1880 took but small part in the
exchanges activities during the year.
Since its formation, however, ap-
proximately $125,0O0000 has been
loaned on curb collateral.
Bond Trading Active
Contrary to the falling off of &C
tivity in stocks, trading in bonds in
creased to record proportions, sales
for the year approximating one
billion dollars in contrast to $685.
100000 in 1880. Sharp reactions in
sympathy with the weakness in
bonds on the 'big board" featured
dealings during the year.
Notwithstanding the drop in
security values, short selling played
an insignificant part in the years
transactions. Officials of the ex-
change estimated that at least rs
per cent of the dealings in curb
securities were on cash basis, and
that short selling was confined to a
few active issues.
Because of their huge public fol-
lowing and the fact that the de-
preston had not affected the power
and light industry to any great ex-
tent until the beginning of 1881,
public utility stocks bore the brunt
of the selling during the past year.
Declining earnings and unfavor-
able dividend action by several
larger companies attracted heavy
liquidation to active utilities, and
weakness in these stocks was &C.
CELEBRATED by agitation in several
sections of the United States to
reduce rates, investigation of several
companies by the Federal Trade
Commission and the possibility of
federal legislation to control the in
duStry.
Oils Forced Down
Electric Bond and Share, the
premier curb market utility, lost
nearly 80 per cent of it's 1880 value
in the heavy liquidation, which fol-
lowed the underwriting by the COM
pany of a large stock Offering by
Electric Power and Light Company.
subsidiary.
Efforts to remedy the chaotic
condition in the petroleum indus,
try, such as proration enforcement
in Oklahoma and Texas, resulted
in only temporary retarding the
downSwing in oil shares. Leading
stocks of this class moved irregu-
larly lower throughout the first
three-quarters of the year, and
broke to successive new lows in the
December liquidation.
Investment trusts were subjected
to the same deflation that played
havoc with values of these shares
in 1880, and at the end of the year
most of the issues in this category
were selling at a price range of from
one to four dollars share.
The decline in prices of indus
trial stocks proceeded at a more
active pace than in the preceding
year, largely because of the pro-
longed depression and consequent
nOOr earnings