Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-10-24

Writssa for The Evsntng 1tax.
luow FORTUNES ARE MADE AND LOST
l Al 10 . problem whoss solution can b e.
fected by no fixed rules will therefore make
no attempt to treat the subject philosophically,
but will treat il simply concretely, giving brief
sketches Of prominent hnsnciers and their
methods Of operating, together with promi-
| nent Characteristic traits which have besn
potential elements in both the requirement
| and eventual loss Of great fortunea Keen in
tslligence, unlimited ambition, tireless energy,
| . cool head and an iron nerve, goaded on by
Unsuitable avarice, usually produce large for
tunes. But ~ svarice in the parent OF wealth
| wealth in turn develops avarics. This IL thus
treated by the old story Of the man who said,
| If only had s1Oo, 900 I'd be satisfied" &c.
Nfrequently happens that when . man has
acquired great wealth his ever-increasing avs
rice, seconded by still greater ambition than he
| mt FIRST started ont with, but directed by q less
subtle intelligence and greatly decreased
| force OF nerve, brings about eventual financial
ruin.
Undoubtedly many who speculate are un-
equal to the encounter. They are a. a rule too
| ignorant or too timid; few are too wise or too
| bold. Such defects are fatal. Self control is an
| absolutely necessary qualification. Specula-
| ton requires greater mental effort than any
SsAoA PoEpo@
NO SENTIMENT m WALL STREET.
Sentiment cannot enter into speculation.
The greatest fool in Wall street is he who thinks
himself man Of destiny; whose confidence
Exaggerated by great good fortune) in his own
powers leads him to believe that he is invul-
nerable. So soon a. this feeling takes posses.
SION OF him he is led to trust to luck rather
than the study Of conditions relating to Wall
| street. He should never trust to secondhand
information. Most Of the losses incurred in
Wall street are due either to insufficient or
false information.
One-sided knowledge 10 particularly danger
Gus; for instance, while glowing accounts Of .
roads prosperity may be published, news Of an
equally damaging character may be suppressed.
All sorts Of reports are circulated by design
ing operators with the purpose OF advancing
or depressing the prices of stocks, and when
such information is acted upon by unwary out
siders they invariably lose.
DANGER IN PLUNaNo.
All spectators should hold back Q cash re-
serve against sudden fluctuations Of the mar
kst; failure to do this is almost always fatal.
have known men to start in with but few
hundred dollars and run it rapidly into thou
sands during protraeted bull or bear move
ment. These men have plunged, and. believing
the upward or downward course of the market
to be interminsble, have added TO their hold
ings as rapidly as their increased profits would
permit, without . thought of increasing their
margin or laying back q cash reserve. When
the tide changes, and it does change as newt
ably as the tide does in the East river their
margins are wiped out by the frs: fuctuation.
and IL stop orders, which are usually exacted
by the brokers in such cases are not quickly
executed they find themselves not only penni-
less, but deeply in debt to the broker. No
broker should ever trust o customer for mar
gin, as such an act is ruinous to both.
When the customer becomes indebted to the
broker he invariably, when he next comes to
the street, goes to another Office, for he will
not be hampered by old debts.
DRKws ONE IDEA.
Daniel Drew at one time controlled more
ready cash than any one man in America. His
life affords remarkable instance Of the &C.
quirement Of great wealth through pursuing
one idea and one purpose.
1t shows that education, undoubtedly great
factor Of success, is not necessary to the &C.
QUESTION Of money. Mr.. Drew's ignorance of
grammar 10 illustrated by his order to his
broker, "Gim me them sheers, when he wished
his shares Of stock given to him. He had SUI
than himself in the market, but he hated and
sought not only to defeat but destroy all who
dared to compete with him. He was cunning
to the last degree and equally bold. Though
himself an ignorant man, he showed great re-
spect for those higher and perhaps more intel
ton, If not from want Of ability. was debarrso
from pursuing.
TO GAIN EVERY ADVANTAGE.
He cultivated religious people Of meanr in
order to use them In the promotion Of his
financial schemes. This was demonstrated BY
hib gift Of . seminary to his native country.
II this was his motive retribItive justice over.
took him. a. he was obliged to default pay
ment for this institution. Drew's wealth at one
al - q
which he made out Of Erie stock, Of which
road be was managing director and treasurer
| In this position he was enabled to use inside
information, and as almost everybody else
was On the outside he invariably gained the
day and they were defeated. In fact 80 great
power was Daniel Drew ~ one time that he
frequently advanced or depressed Erie stock 50
per cent in the course Of day to promote
speculative deals which he was engineering
He was finally ousted from Erie by Jay Gould
He used to say Of Gould, ''His touch is death -
From this point be went RAPIDLY down until he
had reached the last rung or the financial lad
der. His thirteen millions were soon dissipated
in wild and injudlcious attempts to regain con-
troll Of the market He died in debt and
broken hearted, the victim of his own avarice
SPECULATIVE KERNk.
A man no less noteworthy in speculative cir
cles than Daniel Drew is James R. Ksens. His
career is fun Of brilliant episodes
He was born in London, came to this coun-
try in his youth and settled south, where he
studied law. We next hear of him in San
Francisco, where several important cases in
volving mining interests were placed In his
hands. He was also engaged in journalism in
the west He contracted the speculative fever
and became Q broker. His health gave way
and he was advised to come east. Before leav-
ing California he had invested few hundred
dollars in mining shares. About year after,
on his return to San Francisco, ho was as
founded to learn that his stock had advanced
| in price from . few hundred dollars to over
| $500 900.
TbiA fortune was purely accidental; had he
remained in California he would probably hay Q
closed out his holdings upon the advance Of
few points. Although Mr.. Keene had been
comparatively poor, this brilliant stroke of
| luck by no means intoxicated him, and be set
about to increase his fortune Mr.. Ksene
knew that the tidal wave Of speculation would
soon overflow the Pacific coast, and he bought
| scat In the board and drove An enormous
| trade. Everything he touched turned to gold
| He had unerring foresight aid indomissbIe
courage; he knew that many worthless stocks
which had been forced to . giddy height bv
| the gambling mania that then obtained were
| sure to fan. He had the courage Of his con.
| victions and sold the market abort
When the crash came and the smoke of battle
hac rolled away he found that hs IVES an snor-
nous winner.
| In few years Keene had risen from compar
alive poverty to fabulous wealth. In 1871 he
started Tor Europe, but happening to make q
passing visit TO Wall street the cid specuiative
mania again seized him in its relentless Rr.sp
I and he abandoned his Euroneau tour Hara h.