Evening star. [volume] (Washington, D.C.) 1854-1972, 1860-11-21
Prom the Chicago Democrat
Good Advice to inexperienced Stock Specu.
IatOYR Ii.
SrocK GAMBLiSs ON A MARa1S

STocK GAMBLING ON A MARGIN.
The recent heavy fall in stocks in New York
has been the cause of a very heavy loss to a
large number Of young men in this city, who
have been gambling in stocks on q margin.
The way this little game is managed Is some
what as follows:
A young man, clerk in store, a railroad
conduetor, a baggage master, or something of
that kind, has contrived TO accumulate sn all
gum Of money-say one hundred dollars. Hav.
ing got 80 much he is naturally anxious to get
little more, on the principle that man never
is, but always to be blest. He reads in the
papers Of the enormous fortunes sometimes
made by lucky hit in stocks-but then he
remembers that to speculate in stocks you
must frst have them, and that takes more
money than be has got, as he supposss, to buy
goes to stock broker and lays his ambition
open before him.
The broker listens, sympathizes, and finally
enchants the young man by revealing to him
the mystery Of "putting up a margin. -
Here, says the broker, ~ have got for sale
forty shares of the Swampville, Red-dog, and
Eden Railroad. These shares are of hundred
dollars each, but owing to the present state of
affairs on the road the market value of them
Is only fifty dollars. On the completion of the
Youcautus Branch, which connects with this
road at Eden, the whole trade of the rich val
ley of Skunk creek will be poured over this
road, and its earnings will increase 100 per
cent. A gentleman of your experience, my
dear Mr.. Smashtrunk, must see that under
these circumstances the stock Of the Swamp
vile, Red-dog, and Eden Rrailroad must 90
up, possibly to one hundred dollars. Now
you may take those forty shares on sixty day s
time. You shall advance me $3.50 on each
share, margin, and will hold the stock for
you sixty days. You can sell it at any time
within the sixty days If the advance is only
to $75, your gains will be 81 900; if it advances
to 500 your gains will be s., 600. OF course
it is ridiculous to suppose that the stock will
go below its present rate. If il does, however,
all you will have to do will be to put up enough
additional margin to make it stand me in $50
as can sell it tomorrow for that, and only
agree to hold it for you for your accommoda.
tion.'
Dazsled by what appears to him the certain
ty OF making 81 900 on an outlay of S10O, and
the possibility of making $4,000 the infatuated
Smastrunk "goes il" planks down his $780,
and becomes the nominal owner of 40 shares of
S. r. Z. r. r. Now he reads with avidity
the daily report Of the stock market in the
morning papers, and if s. r. 4 E. r. r. is
quoted at 50i his soul is filed with Joy Per.
haps the stock actually does advance a little.
We know Of few cases where a very good
thing has been made in this way, but tely the
thing has all been the other way. Smashtrunk
reads, for instance, on Monday, that 8. r. d
E. r. K. is down TO 48. He groans in spirit,
bat consoles himself by the reflection that per-
haps the bears are playing with it, and that q
reaction will take place. The next day it is
down to 47-then to 46-then at one jump to
40 His 500 are gone, and it will take $500
more for him to get the stock now. His broker
informs him that it will be necessary for him
to put up $500 more margin. He is, of course,
unable to do it, and the broker says the trade
is forfeited. as indeed it is. Smsshtrunk's lit
tie tuadr d is gone forever down.the whirlpool
which has engulphed so many millions. Per.
haps, in three weeks afterwards Smashtrunk ha 8
the modification Of reading that s. Z. Il Z. r.
X. has gone up, as the broker said il would, to
IS, and that if he had been able to hold il he
would have made his 81 900.
In this way, We are told, hundreds of our
young men have lost all the money they had
in the world within the last two or three weeks
They naturally feel very sore about it, and
many of them do not hesitate about accusiDg
the brokers of designedly selling these stocks
which they knew must depreciste, and thus
cheating them out of their margins. But very
probably the brokers acted honestly enough,
and have themselves suffered by the deprecia-
ton in stocks. The fact is that gambling in
stocks is the very worst kind of gambling, and
gambling on Il margin is the worst kind Of
gambling in stocks. 1t is the lowest depths
within the lowest depth. 1t is worse than
selling short on Change, or gambling at faro
JOURNALISM IN PARIs-OM Fogy Method o f
Conducting French Neyspapers.-To those
who have observed the country-looking ap.
psarance of the French newspapers, the fol-
lowing, from the last letter of the Paris cor
respondent OF the New York World, will not
be surprising:
Speaking of newspapers, reminds me of how
far behind the American press are the journals
OF France, in many important particulars, and
in none more so than ia their cumbrous, slow
and inconvenient business management In
this respect they have not changed q particle