Evening star., 1953-01-04
Economy Posts New Records 1852 Despite Earlier Setbacs
Stocks Reach
.22-Yeur Peak,
Volume Down
By Roder Wineet
Associoted Press Finoneiol Writer

AS 1852 ended, the stock market
was at its best level in more than
I22 years as measured by the AS
sociated Press average.
Prices paid for stocks as the
year ended were based on buyers
hopes for high profits in the fu-
ture. In that way the stock market
is said to mirror the future.
Optimism at year-end was never
greater. It was so great in fact
that many of the more cautious
men in Wall street began to worry
a little.
17% Gain In Year.
The Associated Press average of
60 stocks closed on the final day
at $115.70, a gain of a little more
than II per cent in 1852. That
compares with a rise of less than
10 per cent in 1851.
Wall streets greatest surge Of
Ibullishness during the year came
from the election Of Gen. Eisen-
hover and the confident hope that
the new Republican administra-
ton would create an economic
atmosphere highly favorable to
business.
That, of course. was psyche
logical as well as problematical.
There was something more con-
crete for basing high hopes. The
best guesses put 1853 earnings
ahead of 1852, and it was felt
that dividends this year would
be as good as or better than the
previous year. Stock prices in
the end reflect dividend payments.
Bullishness was of the long
term variety. All agreed there
would be short-term ups and
downs with full-scale reactions
possible.
Note of Caution Sounded.
The feeling of caution was
summed up by one broker who
said: "The time to be bearish is
when every one is bullish." And
fright now Wall Street Is bullish.
Last year the greatest disap-
Ipointment to brokers was low vol
ume. AS a consequence, more
lemphasis was placed on popping
1up the securities business than
at any time in recent history.
Volume came to 37,805, ,179
shares in 1852. That was around
l24 per cent below the previous
lyear. And it must be remembered
THAT 1851 was more than Is per
cent under 1850.
However, the total was almost
exactly average for the past 20
years. In fact, only eight times
in the past 20 years has the 1852
volume been exceeded.
Fewer Heavy Sessions.
There were 13 sessions in 1852
in which volume was greater than
2 million shares, all Of them after
the election of Gen. Eisenhower
But the year before there were
Sc two-million-share days and IL
days better than 3 million.
That was not good enough for
Wall Street, and one device after
another was launched to bring in
more business.
Among them were a survey of
share ownership. longer hours of
trading, a move to reduce the
number Of Stock Exchange seats, a
change in the name of the New
York Curb Exchange, an overall
increase in the tempo of adver-
tising and promotion. and a long
range study Of ways to improve
the auction market for securities.
The Stock Exchange with the
Brookings Institution surveyed
share ownership and found there
were $4,000 share owners of
publicly owned corporations. The
big surprise was not the total
number of owners but the total
number Of non-owners. There
AIS million persons in their
thirties and forties who didn't own
one share-a vast potential mar
ker at which Wall Street took
careful aim.
Trading Day Heightened.
The trading day was heightened
to five and a half hours from five
hours and the two-hour winter
time Saturday session was abol-
ished entirely. The old trading day
(See STOCKS, Page CD
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