Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-01-02
Stock Market
Sets Records
In 81 Boom

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NEW YORK, Jan. The
year 1854 saw the greatest stock
market boom In the history Of
the Nation.
Old records going back to 1929
fell one by one as the stock
market marched steadily forward
all year.
The ancient milepost of 1929
remains notable. however. for one
thing it still is supreme for its
orgy Of speculation.
Nothing In the books for 1854
can match the nnbridled ex-
cesses Of 20 that finally cuimi-
mated the Sickening crash OF
stock prices and ended Ia the
stunning breadlines Of the de-
preston.
People made more dollars IN
the 1854 stock market than ever
before. 1t didn't matter whether
they were represented by the big
institutions like banks and in
surance companies or pension
funds or investment trusts, or
whether they were just little
gamblers playing the market
with q few thousand bucks ON
margin. The general public was
In the market. They almost all
made money, maybe a few losA
Not many.
$50 Billion Profit.
How much money did they
make2 Well, the total value of
all listed securities on the New
York Stock Exchange went from
Silt billion at the start Of the
year to an estimated $l70 billion
on New Years eve--a total pro-
1T Of around $50 billion.
Not every one. naturally,
turned their paper profits into
paper dollars. Many preferred to
leave their investment in the
Nations steel mills and rail-
roads. telephones and oil wells,
utilities and automobile COM
panies.
That accounts for the New
York Stock Exchange. The
story was much the same for
the American Stock Exchange In
New York. the Midwest Stock
Exchange In Chicago, and all
the other smaller exchanges
from coast toscoast and IN Cam
ada.
This present great bull mar
ket got going In the middle Of
September ia 1858 after q nine-.
month decline Stocks simply
sold down as low as they were
going to go. Bushes was good.
Profits were picking up, the stock
market hadn't kept pace with
quickenine American business.
Climb Began Suddenly.
Then, the market started to
gain speed and strength, It
dipped under profit-takinc at
the end Of 1858, but it recovered
and kept on surging ahead into
1854.
Trying to tell about the course
81 the market In '54 is monot-
onous-it simply went up ali Of
the time. It did virtually Moth
ing else. In fact, the very lack
Of q corrective reaction irstilled
Street.
Ordinarily. the stock market
VIII advance for d time. and
then retrace one-third to two
thirds Of its previous advance
Tor 9 time, and then retrace one |
third to two-thirds or its pre-
vious gain before 1t starts in
again to recover and 60 on to
new highs. It usually does the
same thing when it Is IN 4 de-
Ginning phase. with rallies re-
tracing one-third to two-thirds
Of previous losses before it selIs
on again.
But this was no ordinary mar
ket. Throughout the year II
paused for only brief intervals
before starting higher aQain
with renewed strength.
Vigorous After Election.
1 When the election came. the |
market moved ahead with un- |
precedented vigor. The explana- |
ton tand YOU can find II, 'ex- |
PLANTATION for almost anything in |
Wall Street) was that the re- |
pubhcans had done 50 much bet |
Ter than expected in the cleo |
lions.
The Associated Press average
OF SO stocks closed the year at |
Sl55,20. up so cents on the day. |
Continued on Page ca. Col. 81