Evening star. [volume] (Washington, D.C.) 1854-1972, 1881-04-23
The Interesting scenes OF Daily
occurrence There
Who fste Spectators Are.
Boston Herald


Who tste Spectators Are.
[Boston Herald
Wall street brokers say that there is double 4
lot threefold more speculation than there wa;
fou. years ago. Then the average number o.
shares sold daily in the Stock Exchange was
1C0 coo to I50, 600. It is now counted dun d AZ
when goo GOO shares are not sold, and In the
excitement OF the great upward movement last
winter, 500. 600 was the daily average, and one
day the number touched 700, 900. Lately It has
been over 500, GOO several times This increase
The Stock Exchange has become too small
to accommodate the 1900 members, and
a. 2 new building Is going up. Seats In
were quoted at s., 600. are now worth s2l, 900.
The increased number OF customers who watch
the tape from 10 g. ~. until p. m have COM
PEELED half the brokers 10 the street to enlarge
their Offices Indeed, the offices of some of the
leading firms have come to be cuTto51t1es. be-
cause OF Innovations For years the typical
brokers' Office In Wall street was small room
In q dingy basement, with desk for the pro.
prletCr and another for his assistant, who com.
bined the duties OF Clerk, bookaeeper. and boy.
Quotations came at rare intervals over tele-
graph wire, and were registered on receiving
slip. The customers were not many, for the
craze had not taken hold of people. The br0k-
ers office OF to day is suite OF rooms. Let US
fronts, and extends through to Exchange
Court. One side is devoted 10 customers and
the general Office, In which the members of the
firm have desks. and the other. separated by a
partition, Is taken up by fifteen or invent ,
bot kkee pers, cashiers. clerks, and assistants.
The front room for customers has an inlatd
oaken hoOr, put together In squares of tasteful
workmanship. The wainscoting, which extends
half way TO the ceiling. Is OF cherry, and the
paper above Ii Is f1t for Fifth avenue drawing
room. In one corner Is fireplace In which
hlckOry logs blaze In cold weather, and above
which Is mantel OF rare design and beauty.
me furniture Is OF cherry to match, and up
ho!stered In leather. But for the regular tick,
tick. tick Of the gold and stock Indicator as it
registers prices upon the tape OF white
paper, you might think you were In a club
room. The rear room, which Is also open.
to customers, is carpeted with Brussels. The
desks are massive cherry, and the touches and
easy chairs are of the same with leather uphol-
sterY. But for the business look given by the
DESKS you might think you were In drawing
room. Another Indicator rattles out prices here
also. just before noon coloTed attendant
moves about with considerable aiacrity, aud, as
the chimes of Trinity Church far overhead ring
out the full hour, he trundies aside the cherry
doors Of the lunch room and dsclOse5 a we'll
arranged table, on which are salads, cold meats,
oysters and other good things. Customers are
firms guests, and the table remains until two
O'Clock.
This office is visited daily by about so men,
young and old. who are Interested 10 the mar,
Eet. Some come at the beginning of the days
business and remain until 1t Closes They
speculate for a livelihood, and are content TO
step In for an hour Or more, get the run OF
prices for the day, leave an order or two and
are OIL to their regular business. Still others
come coz .h ana go at intervals; Among these 50 men
sell stocks at what is called long range. When
stocks are very low they buy, intending to hold
the m until they get very high. This may be
difference to the lOng-range operator how slug
g1sn the movements. He has convinced him.
self that prices are to be higher, and he
off for fIn 0d-a
hunter waits for game. Nevertheless, he Is
compelled to keep close watch On the market
for Unforeseen breakers may come rolling in
upon him at any moment. the operator at long
range Is content with no profit OF less than 10
per cent On par value, and usually he intends
TO get 10 or 20. This class of operator Is the
most successful OF al who buy or sell In Wall
street. His transactions ara few, but when he
takes profit 1t Is big one. In June last stocks
were very low compared with thu previous
February prices, and the long-range operators
all Invested. Those who bought / 600 shares
OF ST. Paul, for instance, aJ 65 aud held it until
the 3Oth OF September, had chance then TO
sell II Tor IS, at an advance OF 80 points, and
Ger a. they might have sold Is points higher.
second class Of operators trade on the fac
tuat1ons OF few days. They are called stormy
the street SPECTATORS. Experience teaches
that, while the tendency OF prices may be up
ward Or downward to marked degree stocks
fuctuate slightly In their rise or fall. In an ad-
vaGclng market, as rule, stocks will go up
steadily two points, waver few hours, and
then decline one point. In day Or two they
viii start upward again two points and hail.
may be, hesitate again, and then decline, say a
point and quarter. 1t is after each one OF
these declines that the stormy petrol makes his
purchases: lie watches the tape with lynx like
after he has profit OF two per cent or there
abouts, he sells, and waits for another decline
before purchasing again.
third class are called scalpers. Any profit,
however small, satisfies them. A half or a
quarter per cent advance in their holdings is
Ell Ough 10 cause them 10 sell and look about for
ahOtner chance. AS rule, they lose money.
Indeed. 1t may be said that two thirds. II not
three quarters, OF Wall street operators find
them5. Ives worse OIL at the end of the year than
when II began. AT best small operators simply
go II blILd. 1t Is the big spectators, the kings
Of the street, who are able to manipulate the
market, who make the money. Experienced
rokers who will tell you that no one person in
twelve who goes into Wall street takes his
money with him when he retires. Some by
good fortune may make what would be snug
and leave speculation alone, but the more they
make the deeper In they get, until some day
along comes crash that sweeps away every
cent Not broker but has fund Of aaecdotes
In illustration OF this 1t Is the most fascinating
of all gambling, and. when once it takes hoid
OF man, he has difficulty In shaking 1t off,
When stormy petrol gets discouraged by re-
peated losses. he turns to operating at long
range. and, after losing at this. he changes
tactics and becomes scalper. He Is constantly
trying some new plan; the scheme of ceaslng
entirely does not seem to occur to him until he
has lost all.
The details Of Wall street operating are
ystery to those who have not taken hand
The person who wants to speculate does not
know where to begin or how TO take the first
step. HOW much money must he put no as a
margin? What does his broker do, and how
much must the broker be paid for making the
purchases? These are constantly recurring
questions. Dozens OF letters are sent to New
1Ork newspapers on the subject and the
writer's seem TO imagine that there is some
thing very mysterious about the whole busl-
ness. AS matter Of fact, the reverse is tina
truth. Nothing Is simpler than purchase for
rise. Selling stocks short Is Just q tr1fie com.
pltcated to novice, but Is easy to understand
The beginner usually starts his speculative
career by purchasing 100 shares of stock, al
though less number may be bought. He
seeks trustworthy broker, and Is told that, to
purchase 100 shares, he must deposit with the
broker eight or ten per cent Of the par value OF
the stock. Dealings IN the New YORK EXCHANGE
are so scaled that ten per cent means 81 900,
and most brokers require this sum from strang-
ers This deposit Is called the margin. The
broker then opens an account with him by
placing s., COO to the credit OF the customer.
The next step Is for the customer to select q
stock which Is likely to advance, and having
made up his mind that Erie, for instance, Is
the card, he simply says to the broker. "Buy
me 100 shares Of Erie" On goes the broker
like shot to the Stock Exchange, where
ne dives into crowd OF 900 other brokers.
Inc moor or the great rom hQa unon IT,