St. Paul daily globe., 1891-05-10

they collapsed and left the situation
worse than before.
The ''outsiders,;' as the public is
called, are naturally bulls. They are
not familiar with operations on the
'short side" of the market. In other
words, they do not understand how it is
possible to sell that which is not pos
sesSed. The transaction, however. is
as simple as one on the ''iong side" of
the market. The speculator sells and
hopes to buy later at a lower price.
Therein he finds his profit In the
meantime he borrows the stock to de-
liver to the purchaser. He returns the
borrowed stock when he buys to
''coyer' his 'short" stock. If he is not
able to buy at a less price than he paid,
he is, of course, loser by the deal. He
is. to use the term, squeezed"
1t is easy enough to trade on the loug
side. The stock Is bought at one price
to be sold at higher one. But it IS not
always possible to do this, and thus the
"lamb' is heeced. When stocks are going
up tits sign that the countryiS is prosper
Gus, and that a good feeling exists among
the people. When stocks are going
down, the times are hard, the people are
cautious i'll their investments and buSi
ness in the street dWindles until it is
confined wholly to the professional op-
orators. Nearly all the great fortunes
made by speculation in Wall street have
been accumulated in bull markets, and
nearly all those lost there have vanished
in bear markets. Proof is thereby fur
niShed that the men skilled in arts of
fsnanan wall q thncn who
fare better in bull than in bear
'campaign."
The speculator to be successful must
be bull or bear as conditions deter
mine, although he need not be active
on both sides of the market. AS rule,
an operator is identified with either one
side or the other. He is active when
the market is going one way, and in
active when it is going the other. The
great secret of speculation in to know,
IN the parlance of the street." when to
"get inn and when to "get out" or to
use different terms, when to acquire an
interest and when to dispose of it.
Jay Gould at the Stock Flicker.
Mr.. Gould is recognized as bull in
Wall street. There have been times
when it has been to his advantage to
see lower prices, and he has used his
skill and power to depress them. 1t is
natural that Mr.. Gould should be bull
He is an owner Of properties, land there
fore producer of securities, cOnSe-
quently he gains by high prices. If.
however, he is seeking the control of
a railroad or telegraph line, he Is in
terested in reduced quotations for its
stock. When actively engaged in spec
nlation it is Mr.. Gould's wont to lift
prices by bulliSh utterances, by sup
nOrtInD orders tho Sfncly
and by the formation of pools to buy
and hold stocks for rise. When he is
ready for prices to drop, the chances
are it is only necessary for him to with
draw from the market. If stocks do not
go down of their own volition he can
nelp them to descend by judiciousIy
distributed selling orders.
wash TRANSACTIONS afford the best
means of manipulating values. If it is
desired to advance the price of a stock
a broker is sent into the stock exchange
to bid for stock on a rising scale. Other
brokers acting for the same principal
are directed to accept the bids and sup
ply the stock. If it is desired to depress
the price the broker is instructed to
"0f1er it down." and it is bought by
other brokers IN the same employ as the
seller. The speculator merely buys of
and sells to himself. Five years ago MI.
Gould retired from
Active Speculation
In the street on account of the state of
his health. The rest that he has OBJ
tanned has restored his physical con-
dition. He says he feels better than for
fifteen years. His appearance bears
out this statement. He has vastly in
creased his corporate interests within
the past few months. He is in practical
control of the railroad situation in the
West. His acquisition of the Union
Pacific railroad gave him the upper
hand III the transcontinental traffic. He
Is all-poWerful in the management, and
by stock purchases could easily make
his authority absolute in the affairs of
the Richmond d West Point Terminal
system, which affords him rail line to
Chesapeake bay. It's a short span thence
toNew York and the other great Atlantic
ports. There have been reports that he
was endeavoring to obtain possession of
the Baltimore q Ohio railroad In such
an event he would be master of thor
pughfare entirely across the continent.
The Richmond & West Point terminal
system is operated in direct connection
with the Gould Southwestern system.
and it in turn has traf1c contract with
the Pennsylvania railroad, sc that the
route between New York and the Paci-
fc coast is continuous.
Mr.. Gould has made large investments
In the stocks of various roads in order
to have voice in their direction. For
instance. he is the largest individual
stockholder in the AtchiSon, Topeka &
Santa Fe railroad. He holds more or
less stock in nearly all the important
railroads Of the country. The Union
Pacific is considered his strongest pos
session. He can use it to direct the
course of traffic and subjugate connect
Ing and competing lines.
While Mr. Gould was regaining his