Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-01-02
Stock Market Sets
New Records DURING
Year 5 Steady Gain
lcontinued Prom FIrst Page.l

Continued From First Page,
and only $3.50 from the all-time
peak.
The gain for the year was
t47.1O. or 49, per cent. The next
best year was 1928. when the
average was up 40.1 per cent. In
1929, the average from the first
Of the year to the alI-time high
on September 8 advanced 34.4
per cent. For the entire year Of
1929. Of course. the average
dropped 15.5 per cent.
The dollar was worth more in
1929 than today. That's true. At
also Is : fact that the value Of
all listed securities today IS at
an estimated $17O billion. as
compared with $85.5 billion Is
years ago.
Broadest Market In History.
There are more issues listed
for trading on the Stock Exc
change now than ever before.
Markets are the broadcast IN his
tory.
In the total number Of shares
trades. however, 1854 was only
the seventh greatest year with
SIS, 374,622 shares changing
hands. It is the best since 1888
when 654.816.000 shares traded.
IN the record high year of 1929,
the total was l.124, 800, 900
shares.
When comparing the 1854
market with 1929 or any other
year, it Is wise to keep In mind
the vast differences. For exam
pie, the great increase In popu-
lation, and the much higher
industrial production. national
income, Government spending,
employment, and corporate prof
Its and DIVIDENDS.
The year 1854 marked quite a
change in the nature Of trading,
There was no doubt that the
general public came into the
market in large numbers. At the
same time, the great institute
tions bid against each other for
the blue chip stocks and for the
pale blue" chips as well. AL Of
that helped to raise prices.
The most notable change was
the introduction by the New
York Stock Exchange Of the
monthly investment plan s(MIP)
last January. Under the plan,
any person can invest on q regu-
lar basis as much as 1899 q
month or as little as $40 every
three months In q stock Of his
choice. Favorites were the big
corporations with well known
names.
$4,000 Investors.
NIP has not been q bowling
success, but it has brought in
about $4,000 investors Who so
far have paid Id around $40
million. When these current
plans are completed, they will
amount to around $66 million.
These people now are capitalists.
And 1t Is all for cash; no
margins.
Margin trading often is an in
dex to speculation. In trading
on margin. you put up q certain
amount Of your own money and
borrow the rest from your bro
ker. In 1929. you could get by
with 10 per cent Of your own
money. Today you have to put
up so per cent.
The 1854 market had Q good
margin record when compared
with 20. Indications are that
margin trading is only about
one-tenth as prevalent today as
IS years ago.
Nevertheless. Washington ON
cials have let it be known that
they are keeping q close eye on
the stock market. Their worry
Is speculation. II they think It
might get out Of hand, they have
q number Of ways to put on the
brakes.
Can Raise Margins.
One OF these is raising the
/ margin requirements. Because
margin trading today Is not the
factor it used to be in pushing
prices higher, raising require
ments might not be SO effective
However, If the Government
did raise margins. that would
be q bright red nag Of warning
to Wall Street not to let the
stock market get out Of hand
Every one in the bushes,
knows that. And brokers Of late
have been more vocal with theh
words Of caution. And wher
they say watch out for a mar
ket Dip" they don't mean thai
the economy Of the Nation i
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