Evening star., 1947-01-02
Stocks Close Year
with Loss Of About
9,0o0,00OoOo
By Victor Eubonk
Associofsd Press Finoneiai Writer

i NEW YORK, Jan. 2.-If the stock
market did nothing else during the
past year-and plenty really was
done-it at least confirmed that
oldest Of Wall Street adages: What
goes up must come down."
This was illustrated by the up
surge Of the list in the early part of
1946 to the highest price levels since
1881 with subsequent drop to the
lowest bracket since early 1945. The
slide was accentuated by the Sep
tember collapse, which was the
sharpest in is years.
Despite subsequent recovery the
market closed the year Tuesday with
net loss in quoted values of ap-
proximately $4,000, ,000, 900.
From January through May the
market averages established string
of new 15-year peaks, although suf-
fering sharp spill in February.
The list overrode coal, railway and
steA labor disputes in addition 70
wage-price tangles and numerous
other handicaps, with buying largely
credited to imitation psychology.
"Thin" Market Created.
The rise of January % was the
best since November I, 1910, with
the volume of 3,480,000 shares a
five-year top. There was q fair
sized retreat on January 81 when
the Federal Reserve Boards margin
ruling, requiring 100 per cens cash
transactions, went into effect.
Thereafter dealing were exception
ally thin" with many "blue chips"
jumping or falling one or more
points between sales. The biggest
drop since May, 1910, occurred on
February 10 as price control fears
prompted liquidation.
Foreign news unsettled the mar
ket in the early part of March, but
rallies to new highs were frequent
and net gains for the month were
numerous The push continued in
April. On April, 20 the market be-
gan the fifth year of the third
longest bull swing on record.
Peak Reached in May.
The bulge continued in May and
on the 18th of the month the As
sociated Press 60-stock composite
touched its peak since March 26,
1881, and, at $82.4O, reflected an in
crease in quoted values since the low
of 1912 of about $50,000, 100000.
June saw the beginning of the
end of the lengthy honeymoon. Talk
of growing consumer resistance to
mounting prices for goods sobered
most bullish contingents and there
were only eight plus sessions in the
months 20 days of trading. While
July witnessed another overall de-
cline, there were eight successive
recovery sessions as the month con-
cluded. Activity dwindled appre-
ciably. Further net losses were /
in August with dealings
slack.
Wide Slump in September.
On September the list was hit
by the widest slump since the
secondary relapse Of June 16, 1880.
Leaders tumbled 81 to SIT a share as
bewildered holders dumped commit
ments. The backdown was resumed
September 4 on turnover of
3 500, 900, largest of the year. No
specific reason was given for the
crash, but growing business inven-
tories, the sickness" of new secur-
tiles offerings, bank selling Of col
lateral and the feeling that the long
bull ride might be approaching the
finish were some of the causes
The market on October
3 touched the lowest average since
March 27, 1915, and showed a loss
If around s23 900, ,OOo, 900 in quotation
values since the May high. The
averages, however, finished the
month unchanged
Despite the big Republican vic
tory in November, the market in
(See STOCKS, Page A-21)