Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-07-16

do; and people ere accustomed 10 make
profits by buying at one price and sell
ing At another and . higher price.
ness. and II IL this that makes tho
world go round
While IL Is easy to account for the
fact that the generality of people buy
for . rise. IL IL not so easy 20 explain
or understand why they buy all the
more eagerly after stocks have
taken y rise. more or less sustained
in duration and large in amount.
The theory appears To be. IL
indeed there Is any theory about
IL. that the more they have risen
the more chance there is that they will
keep on rising. South Sea shares in
the last century were never so eagerly
competed for Is when they were selling
at many times par; and when tulip
bulbs In Amsterdam were quoted at
one hundred forms each. more people
wanted them than when they were
plentiful at ten forms II would a2-
trained In finance. regards the price as
q measure Of real value. overlooking
the fact that price II merely an ex-
preston Of opinion. and that opinion
Is one Of the most variable and incon-
slant factors that 60 To make up con-
duct. Nothing Is constant IN relation
to vsluas except necessity. Men must
eat. therefore wheat will always have
value; they must be clothed. therefore
cotton will always have value; they
must have income. therefore enter
prises that are sure 10 yield income
will always have value All schemes
and all operations come To this crucial
test at last: sooner or later people
wake up To the truth that the test of
anything lies in IT'S relations 20 human
needs. and EXISTS only there.
ON general principles. just Ia proper
tion a. any valuation mounts the ten
denry on the part OF all underlying
circumstances is To pull II down again.
We are all familiar with gravitation.
The small schoolboy sings: What
goes mp must come down either on your
head or on the ground" And although
the rhyme is faulty. the urchin has
gra~pcd profound truth Yet when
the X c railroad shares are elevated
from fffy Ia one hundred the inexperi-
enced public begin 10 yearn for them
When they were fifty there could only
De loss Of fifty dollars a share: when
they touch one hundred and ninety
there can be loss OF one hundred dol
lars n share. This doubles the risk at
tendant on a purchase, and Ia fact
more than doubles IL. because IL Is
much easier Ca knock OF points from .
hundred valuation than from . fifty
valuation. wave at the bottom 10
large and 6rrn. AZ the top IL II slender
and weak: and the same is true of the
price 81 cny commodity. There Is
safety AZ the base and risk nj the
top. aud yet the public invariably
come into the swim at the top.
To change the figure they climb To the
apex Of the pyramid just in time 10
catch the earthquake that demoiishes
the whole Of the structure except the
base.
Women. too. are disposed 20 hang on
~ purchase with great perfinacity. a
habit which sometimes leads - excel
lent results. But They are As a rule
too much addicted - taking advice and
acting on what other people tell thera
without weighing their motives.
whether actaated - selfish interest
Or No. Vet their munitions are often
Surprisingly prnfou II and correct. Ny
erinion Is that u women were trained
in finance as men often are. theRvould
-
BODY ~ rapid and successful operators:
but since this j. hardly an aftainsble
condition they must b classesl A. ANA
rsnrs. very few Of whom schseve sue
,.ess HFSRv CIxws