THE ALMIGHTY DOLLAR

Hokitika Guardian, 19 February 1929, Page 7

THE ALMIGHTY DOLLAR

SCENES IN WALL STRICT

SAN FRANCISCO, Dec. 20

Tim seeiiso on Wall Street during tlie much-vaunted “Hoover Prosperity period will remain memorable tor many years in the annals of the Yankee rush for the almighty dollar, the chase lor which was at fever height during the month of December, terminated as it was by a terrriiie clash when millions of dollars were lost ov a too-eager public which had dabbled in the hectic race to buy stocks which had but a inflated value.

Ten o’clock .on Wall Street, with another 5,51)UG,(K)0-simrc day starting saw the sun swinging slowly up limn the river.. It found its way to the tip.-: and turrets of the skyscrapers. Jt splashed over upon the streets, making bright, golden eddies on the floors of the narrow canyons where gold is a drug on the market yet hidden from all eyes. Ten o'clock on Wall Street tound clerks lying stretched out on tables with dictionaries as pillows with head propped up on the telephone hooks. Tliei'e clerks were lying collapsed at their tables, with heads resting on piles of papers, rows of figures, Their faces were pasty white, their faces lined and drawn, their , eyes circled, but their collars were white and their linen spotlessly clean. There clerks snapped automatically into place, like the puppets of a mechanical ballet. The sun finds, its way to the windows and begins to spill its gold lavishly, freel> generously, in rooms where men battle for gold l Collapse for gold! Slave for gold! Ten o’clock on Wall Street. Another 5,500,000-share day is beginning. For days and days the shares have mounted and mounted. For days and days the Hoover “bull” market has been on. High above the street are perched the agents of the public, the professional speculators the “bulls and the “bears,” the spenders and the wasters the gamblers and the investors. High above the street in the mahogany caves of the modern cliff dwellers, men wonder how they can go on handling tin vast volume of business that swamps them. Its got to be done! Something of the spirit of the football “yell leaders” gets into the air! They rush from their mahogany caves. Dapper well groomed, with pressed pants and carnations in their button-holes, tney rush to the floor of the New ’ioik Stock Exchange.

“THE FLOOD IS ON.” Tmi o’clock on Wall Street and another of “those” days has begun. The flood is on. I lie tickers are swamped before they can start. Shares by tens of thousands! Shares by millions Get your bids in! Get your sales ini Got to represent the clients! Somehow it's got to be done. Rush, pull, run, crowd and shout | Crash the posts! Get your bids in! Swamp the tickers! There is an air of madness about it Jill. Ten o'clock on Wall Street. M.n sit comfortably ill Hie ticker rooms «.i 11.big hotels. Men sit comfortably and smoke Coronas, pass cigaretts one to the other and watch the antic of the “board boy” as lie placards a wall wilh the market (jactations. Men sit c* mfortalily and smile to themselves. “Up five points this morning.” “Yep, I'm carrying 2000.” “Umni. . . . ten giand sit in to hour! Not bad, my boy!” Mm. comfortably and take their profits from their losses, without any exertion more than handling a bit of paper to a messenger or going to a telephone. .Men make fortunes between 10 and noon, and do not leave their chairs Men make fortunes while others collapse for them. The customers must he served!

AFTERNOON ARRIVES

Afternoon on Wall Street! A gong rings and the doors close, finding men more wilted than their carnations, and they make their way out. The sun has long since swung over. The air is chill. .It bites through then overcoats. Behind they leave the swamped tickers and the swamp.u clerks. The swamped clerks face arm ies of figures. Stenographers, clerk: book-keepers, are all tired and worn Two weeks’ extra pay, hoys! Thro, weeks extra this week! And ahm tip on a sure tiling to-morrow. .So into the night. With lights blinking from the nialioganicd eaves and collapsing men going out tor coffee or a “shot” of whisky at the speak-easy. Night, and a moon swinging over from the river, the moon that drops puddles of gold at the feet of men too weary to see its transient beauty. Such is the word-picture of the average scene on Wall Street as seen by the outside observer when the “Hoover market” was at its height hut Billowing tin* crash, the sales drojiped to a paltry 2,0(K),(;(K) per day, giving the dorks and brokers some surcease irom the unparalleled rush when they exiraelcd many millions of dollars lor commission in the record-breaking sales. Regardless oil increasing money rate and the warnings of financiers and hanking experts in the past few years the stock market has continued to advance, and the number of shares bailed in each day has reached proportions beyond the expectations ol the most enthusiastic.

A daily turnover of ft,(HK),(K!O snares or iiioro mo longer staggers •' tiadeis imaginalion. Within a single week the Stock Exchange lias watched tliis peak crossed many times. Certainly, ••lie de|ujrp of orders left the traders gasping it, tlie day’s end and ioreed hoine th* realisation of the present inadequacy of the Exchange machinery.

THE EXPLANATION. Since this sort of trading has become an accepted practice rather than a fantastic dream, some basic reason-; must he sought. The continued advance in stocks has made obsolete many well-accepted theories. The breadth of the stock market lias been brought about by the popularisation of tlic various “everyday” industries of the country—in the form of stock companies now owned by the public. The tremendous interest in the stock market and the boldness with which tiie average man enters the security field, is due in large measure to his familiarity with the various corporations listed there. They represent businesses which to him are simple—corporations whose products he uses in his daily life the radio, refrigerator, automobile, not excepting even 'his breakfast food. He feels at home and he has learned to understand that security prices not only reflect earnings hut future prospects and the average man is a “hull” on the United

.States. Most business men believe that under the leadership of Herbert Hoover the United States is entering the greatest commercial renaissance ol nil ages. As a result the stock market of to-day reflects the desire of the average man to put his money into those basic industries which he expects will benefit.

In the train of legitimate buying ot securities .however, has come speculation of colossal proportions. This has encouraged gambling in securities which are not so sound, by those who are anxious to get rich quick. Thus reactions are to be expected—possibly of considerable scope in that ''lass ol security. The average price of stocks in America has nearly doubled in the past two years. The boom described by our correspondent lias been followed by the usual re-action, anticipated in his article and cables received during the past three days’ record a huge “break” in prices, which still continues, and which has reduced stock values by millionof dollars.—Auckland “Star.” .