Evening star., 1933-01-01
Market Has Maintained Fair.
Iy Firm Tone During the
Past Year.
RECORDS ESTABLISHED
IN BOND TRANSACTIONS
Exchange Ends 1882 With Aver.
age Decline Of 9 Per Cent From
Levels Of Last January.
BY JOHN A. cRONE.

Special Dispatch to The Star
NEW YORK, December 3l.-The
Curb Exchange does not regret the
passing Of 1892, with its attendant
anxieties, but, like year ago, 1t looks
forward to an improvement in economic
conditions which the whole Nation 10
striving to bring back in 1888.
Although the volume Of trading was
down nearly so per cent, prices did not
suffer the same shrinkage as in 1891,
when there was an erasure Of some
$l4, 600, 900, 900 in quoted security val
ues. Despite the numerous dividend re-
eucticns and omissions, the Curb at the
end of 1882 had 1926 dividend-paying
issues out of 2,201 stocks admitted to
trading privileges. This Is more than
SIS per cent of the total list, and con-
trasts with IS per cent in 1881.
Although bond and stock brokers
handled fair share of business, the
Curb money post was dull because Of
lessened security activity and the low
rates quoted for call and time money
in the outside market. The Curb
money post, however. since its estab-
lishment in. April, 1880. has loaned
$110, ,000. 900.
The Curb, unlike many institutions,
operated throughout the year without
a deficit for any day, thanks to rigid
economies. Although few OF its menu
bers could boast similar achievement.
there were only 10 suspensions caused
by insolvency, the same number as in
each OF the two previous years Fall
ures, therefore, since 1929 total only 30.
Although failures, measured by
banking or commercial defaults, were
insignificant. the Curb experienced O
record number of designations Of asso-
ctate members, who were unable to pay
dues or continue in business. They
therefore dissolved or went into re-
ceiverships long after they resigned
from the exchange. Such designations
approximated 100, thereby bringing as
sociates down to 500, compared with
their peak of 6oo in 1929 Regular
memberships remained at $50
Bond Trading at Peak.
Curb records established during the
year included the largest bond trading
for any one day In the history of the
exchange, August %, when S9,7l5,000
in bonds changed hands: the biggest
monthly bond volume in history in
; August. with S147,339,0 900; the largest
number pf bonds admitted to trading,
sac domestic and foreign issues, or 1s7
more than in 1891: record par value of
bond listings of s9,750, ,00o. 900, against
$7118,884. 900 in 1881; the highest
number OF Curb members dealing on
the floor exclusively in bonds, 81 against
II in 1929: record breaking number
Of securities on the exchange, listed
and unlisted, 3o29, or rs above the
1881 peak, and the huge shrinkage In
volume of shares traded, which, around
56,0o0,0o0, contrasted with 10000, 900
shares In 1881 and an absolute peak
level OF more than 476, ,O0o, 900 shares In
1929.
Factors in Share Moves.
The Curb market in 1882 started st
the extreme low level reached at the
1881 year end, but moved up gradually
until mid-January. when IL reacted,
with minor Interruptions, until the
middle Of the next month, as bank
failures scared and the Government
deficit was emphasized. Creation Of
the Reconstruction Finance Corpora
ton, the reduction Of railroad wages
and the enactment Of the Glass-Stea-
gan banking bin, however, caused q re-
covery that extended into mid March.
A setback then took place that, with
minor rallies excepted continued until
the early part Of June. This saggtng
tcAtuClCJ WAS accompanied Dy receiver
ships for the vast Kreuger and insult
properties record low levels for many
commodities, an additional tax on stock
transfers and many foreign disturb
ances. The average of rs active Curb
stocks showed a decline from March 8
to June Of AZ per cent.
Between June and September I
the market netted an advance Of 109
per cent, most of the gain taking place
In August, month in which many lines
Of business reported Quickened opera
tion and sales. On September Z an
irregular decline started, which, despite
brief and strong rallies, lasted until the
year end, leaving the stock averages
down about o per cent from the level at
which they started. At the end Of 1891
the market was down so per cent from
the level at which it began the year.
The consensus of the financial COM
munity at the year end was that the
market lows of the depression were
reached last Summer, but that predic-
tion was vigorously disputed by some
OF the shorts" Bear" operations dur
ing 1892 were not impressive. Short
selling, except In few market leaders.
played a minor role in depressing mar
ket values, because rs per cent Of the
dealings on the Curb are on a cash
and-carry" basis.