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long tour is very heavy, and will usually What money is made in music in Amercontribute a certain sum for advertising. ica is made by singers, although the In the end he gets the same returns as un- amounts earned by them are usually der the other plan. Few pianists under grossly exaggerated. Still, the singer apthis plan receive less than fifty dollars a peals to a much wider public than the concert, and it has been plausibly stated instrumentalist, whether it be an operatic that one very popular pianist is to re- star or a humble worker in the ranks of ceive a gratuity of forty thousand dollars those who daily make havoc with orafor playing a certain instrument in a torios and songs. And speaking of oratour of a hundred or more concerts. torios brings us at once to the subject of

This will go toward explaining the mys- choral societies and “music festivals." tery which surrounds the existence of so They may be disposed of in a few words. many concert pianists, who play week Few music festivals, backed as they usuafter week to handfuls of people or to au- ally are by the full influence of civic pride, diences which are obviously of the dead- manage to make more than their exhead variety. It is a sad and solemn fact penses; and if choral societies do not enthat of all the pianists who have played joy a guarantee or subsidy, it may be inover this country since Rubinstein was ferred with reasonable safety that during here, the number that have actually made the Christmas holidays they give one or money, over and above what they cost more performances of the Messiah. Hantheir managers or backers, is probably del's masterwork constitutes the chief less than a score. Indeed, it would be source of income of an overwhelming very difficult to name even ten whose majority of choral societies. The antours showed at the end a balance on the nouncement of its performance is suffiright side of the ledger. Of these, a few, a cient to fill the house not because of very few, have made large sums. The its intrinsic musical worth, however great rest have made what, if music were really that may be, but because it has become conducted on a business basis, would be by tradition, as no other oratorio, a

, a modest livelihood.

vehicle of worship peculiarly appropriate The activity of piano manufacturers at Christmas, thus attracting thousands does not end with pianists, although natu- all over the country who are never seen rally the greatest part of their energy

and in a concert hall on any other occasion. money is spent on them. They often sub- The money made by the Messiah considize tours of orchestras, of violinists, of certs goes far toward paying the deficits 'cellists, of conducting-composers and incurred by those which present some composing-conductors, and few singers of more modern work. prominence start on a concert tour with- It is an interesting fact that of all out the comfortable knowledge that a branches of music, it is only among singsnug sum is to come from the makers of ers that the supply is unequal to the dethe piano which is to be used in the con- mand, that is to say, of course, the supply certs. Violinists especially are notoriously of good singers. This naturally accounts a “poor business proposition.” Very few for its being for managers, general and of them, however picturesque in appear- local, the most profitable branch of the ance, make money for those who back business, and it is the branch which is their tours, and an explanation of their conducted most nearly in a really busipersonal prosperity is very often found in ness-like manner. Concerts by singers the "underline" on the programme

of the are bought and sold with the idea that concerts where they appear, to the effect they will make money for all concerned, that “The Piano is a Such-and-such,” the singers, the impressario, and the local even when no piano appears on the stage. manager. The singer's fee, in the case of And so it is with other instrumentalists. a "star," is regulated generally by what

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he or she “can bring into the house." No thing of the scores of “little fellows,” left prima donna (we limit ourselves to them, nothing to show for their years of labor. as men singers of very high price are rare- They made singers rich, but the inevitly available for concert work) gets in a able deficit got them at last. series of concerts an average fee of $1000, If one has a commodity, or even a lux$1500, or $2000, unless it has been fairly ury, to sell, and after it has been placed well proved by experience that she will on the market at a large expenditure nobring in that much and more at the box- thing but loss results, either the public office, which is a final test of a singer's does not want the article and it is a success. Very few get such sums,

but failure or there is something radically such as do may be fairly reckoned as wrong with the business methods which earning them.

have exploited it. Music would be in With the next grade of singers, those that case were it not for a factor which who give song recitals, sing in oratorios at is peculiar to itself. It is a luxury for the larger festivals and the like, for fees which the public will not pay

the amount ranging from $150 to $500, their price is necessary to produce and market it. Yet largely the result of supply and demand. one cannot say that the public does not Few of them, of themselves, could bring want it, since it spends several million to the box-office the amount of money dollars each year for it. Nor can it be that is paid for their services, but they are said that there is something radically necessary, there are not very many of wrong in the manner in which it is sold them, and their names combined with to the public. All things considered, others make the prospectus of a concert the business is fairly well administered. attractive. As for the great army of ob- While in isolated cases commercial methscurities, the “serviceable,” the “reli- ods are used in its exploitation which able,” and the “conscientious” singers are decidedly open to criticism, the muwho will accept any fee, they sing chiefly sical activity of this country may be for the sake of advertisement, thus to in- generally attributed to an altruistic purcrease the number of their pupils. Won- pose on the part of a minority to teach derfully enough, they very often succeed the great majority to find pleasure and in their end.

comfort in the divine art. And until Yet despite the fact that this branch of this majority has learned its lesson and the musical business is generally profit- has begun to contribute its part to the able, how many impressarios have died support of music, this great deficit will rich ? Maurice Grau retired from the continue, increasing as a wider public is Metropolitan Opera House after five reached for, because the only way in years of exceptional prosperity, the pos- which this great majority can ever be sessor of a comfortable fortune. He is the reached is by keeping the supply larger first man in the history of music in this than the actual demand, thus leaving country to do so. Abbey, Strakosch, empty seats in the concert halls for new Maretzek, Mapleson, de Vivo, to say no- converts.

THE WORLD'S WEALTH IN NEGOTIABLE

SECURITIES

BY CHARLES A.

CONANT

of nego

The present French Minister of Fi- being, but the seriousness with which it nance, M. Caillaux, in a recent letter was pressed indicates the important part discussing the proposed income tax, de- which securities now play in the wealth of clared that negotiable securities — in the civilized countries. form of stocks and bonds

now repre

Exactly what proportion of the total sent the larger part of public wealth. wealth of the world is made

up This probably exaggerates somewhat the tiable securities, there are not sufficient proportion in which such securities en- data to determine with precision. Estiter into the aggregate of the national mates have been made, however, from resources, even in such investing coun- available sources of information, of the tries as France and England; but the face value of such securities quoted on spirit of his statement is correct, that the European exchanges and, in some cases, importance of this element of wealth has of their market value. In the United increased enormously within the past States a preliminary examination of the two or three decades. So great has been field by the present writer has shown this growth, and so easily capable of con- visible outstanding securities issued by cealment and quick transfer are the evi- American corporations to the amount of dences of ownership of property in this $34,514,351,382. An inquiry conducted form, that the French government per- by the Bureau of the Census into the value mitted a semi-official suggestion to leak of the physical property of the country out in the summer of 1906, that an inter- showed a total in 1904 of $107,104,192,national conference should be proposed 410. Upon the face of these figures, nearto devise means to prevent the citizens or ly one-third of the wealth of the United subjects of any one country from escap- States is represented by securities. ing taxation by keeping their securities There are several modifying factors to abroad. The project was so chimerical, be taken into account, however, before and so little likely to receive the sym- accepting this estimate as definitive. The pathy of the governments of those coun- most important of these is the fact that a tries which have profited by the transfer considerable proportion of these securiof French capital to their markets, that it ties are owned by holding companies or was at first regarded as nothing more by other corporations. If the securities than an attempt to frighten a few timid issued directly by such companies are owners of securities into declaring their considered as based upon their investforeign holdings for purposes of taxa- ments in other securities, there is a duplition. At the session of the Chambers cation of the same capital, which should last summer, however, a project was

be eliminated in order to reach the net included in the budget report, for re- wealth of the country represented by quiring foreign banks with branches in negotiable securities. The amount of France and French banks with branches such inter-corporate holdings of securiabroad to furnish to the government lists ties, so far as has been ascertained, is of their depositors with the amounts of $10,120,418,699. If this amount is detheir deposits, whether in money or secu- ducted from the par value of the total rities. The project failed for the time volume of securities ascertained, the net VOL. 101 - NO. 1

97

wealth represented in this form is $24,- value, the par value standing at $34,393,932,683. It is probable that these 514,351,382, and the market value of the estimates are considerably within the same securities on June 30, 1905, at $35,truth, since the methods which were em- 460,506,877. In discussion of the aggreployed in making the preliminary survey gate, we can then, for most purposes, did not permit the searching out of all deal with par values without straying far small local corporations, nor did it per- from the truth. mit the ascertainment in all cases of cor- The par value of stocks issued by porate holdings of securities.

American corporations and ascertained to The factor of market value of securi- be outstanding on June 30, 1905, was ties is important, but the market value of $21,023,392,955, and of bonds $13,490,the stocks and bonds dealt with did not 958,427. How these were divided among vary radically in the aggregate, in spite different classes of corporations appears of individual variations, from their par in the table below:

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In order to get an adequate idea of the various later dates. M. Neymarck did proportion of the world's wealth repre- not go far outside of organized markets sented by securities, it is necessary to for his material, so that an addition cross the ocean and learn the great out- of about ten per cent is justified for put of the chief European countries, inactive securities in order to bring his which have been so long piling up saved figures for 1903 into comparison with capital that they have invested much of it those for the United States. The figures abroad.

presented by M. Neymarck for the prinThe most complete investigation on cipal countries, based upon the total this subject is that begun in 1895 by issues, with slight additions made for the the French economist, Alfred Neymarck, securities of corporations not quoted on under the auspices of the International the stock exchanges, apppear in the folStatistical Institute, and continued at lowing table:

ESTIMATED OUTSTANDING SECURITIES IN EUROPE AND THE UNITED

STATES, 1900
Country
Par value of Securities owned.

Population. Amount per Capita. Great Britain

$26,400,000,000

42,789,600

$616.97 France

19,500,000,000

38,961,950

500.94 Germany

10,000,000,000

56,367,180

177.41 Russia

5,400,000,000

129,004,500

41.86 Austria-Hungary

4,400,000,000

45,405,270

96.90 Netherlands

2,200,000,000

5,431,000

405.08 Italy

2,300,000,000

33,218,330

69.24 Belgium

1,400,000,000

6,983,220

200.42 Spain

1,300,000,000

18,618,090

69.82 Switzerland

1,100,000,000

3,315,450

331.78 Denmark

600,000,000

2,646,770

226.69 Sweden and others

400,000,000

51,537,010

7.76

Total Europe
United States (1905)
Japan (1905)

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Aggregate

$111,077,764,333

565,515,480

$196.17

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Here then we have a total volume of per capita. Only four other countries securities, without going to Latin Amer- rise to a level as high as Germany in ica and Australia, that more than equals per capita wealth, Denmark, with a the entire wealth of the United States. Is computed wealth of $2,462,449,000, or it any wonder that the security markets $1,119 per capita; the Netherlands, with have come to represent, more than ever $4,282,520,000, or $892 per capita; Switbefore, the pulse of economic life, and zerland, with $2,394,318,000, or $798 per that he who contemplates doing any- capita;and Belgium, with $4,808,102,000, thing to disturb those markets, even to or $751 per capita. The Empire of Russia further the ends of justice, should weigh shows a large total, — $31,267,262,500; carefully the consequences of his acts ? but when it is distributed over her great

As has been said, there are no data population of 105,800,000, it yields an which are absolutely accurate in regard average per capita of only $296. to the ratio of securities in each ry If all the securities quoted on the Paris to the aggregate wealth of the country. Bourse were counted as a part of the Several intelligent estimates have been wealth of France, it would justify the made, however, by careful statisticians declaration of M. Caillaux, that the in Europe as well as in the United States. larger portion of the wealth of the counOne of these, made by Mr. Michael G. try was represented by the value of Mulhall for 1896, printed in the volume securities. It is only by weeding out duof the United States Census on “Wealth, plications, however, of securities issued Debt and Taxation,” puts the total in foreign countries and quoted on sevwealth of Europe, in all forms of pro- eral exchanges, that the correct relation perty, at $342,528,602,500, or $755 per is obtained between total wealth and capita. The richest country is naturally wealth represented by securities. With the United Kingdom, with a valuation these modifications, it appears that about of $57,453,899,000, which affords an 45 per cent of the wealth of Great Britain average per capita of $1,455. France is in the form of securities, about 40 per is credited with wealth to the amount cent of the wealth of France, and only of $47,156,385,000, which amounts to about 25 per cent of the wealth of Ger$1,228 per capita, while Germany shows many.

The ratio in the United States, a valuation of $39,185,058,000, or $751 as already seen, is about 23 per cent by

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