The sun., 1893-04-02
sHouIp mAReIss BE ABobrsHED, ,
The wan street vetern. Says Yes, but His
Sincerity is Questionab,e.

The Wall Street veternn Says Yes, but Hi
sineerity is ouestionab'e.
Some time ago young man we'll known II
Wall street entered the private office Of |
wealthy broker. and the following converse
| tion ensued:
Mr.. Blank" said the young man. II would
| like to have you buy nve thousand shares o
New England for me. / have no money ol
collateral to put up just now. but II tho market
poes against me will pay my loss shortly"
Tho broker. q man Of many years expert
ence ia Wall street. accustom ed to the tricks.
the subterfuges. the selfshness Of men who
called mselves flnancfers. operators. spec-
ulators. and what not. did not appear startled
at this extraordinary proposition. He merely
looked up ut his visitor In quiet way. and
regarded him steadily for moment He saw
man OF not more than 80 years. OF athletic
frame. frank. open face. and IN air Of self
confidence. The broker knew him well a. a
bold but honorable operator He hesitated
hardly moment before replying:
Certainly; your order will be filed"
The market went down the next day. and
the young man was in debt some thousands
OF dollars. He asked the broker to carry the
stock along for him. but still he produced
neither money nor collateral. His wishes
were carried out to the letter. and when the
transaction was finally closed the young man
was big winner without having put NJ dollar.
The broker. who was also his hacker In this
instance. had. OF course. implicit faith in his
honor. and overy body in tho street who knew
the young man agreed that he would have
paid had he lost.
Tho circum stance came up for discussion
during recent dull day In another brokers
office. and the veteran was present He listen
ed in grave silence to the expressions Of
1T.
all had spoken, he said:
I'VE nll know there arc some operators
whose reputation for honesty is so high that
brokers are only too glad to execute orders
for them without any margins. They are ex-
ceptions. OF course. but l never heard that q
broker lost anything BY his confidence.
THAT brings me to this whole subject OF
margins. l believe brokers and operators
would both be better Off II margins were
abolished altogether and laws were passed
to enforce the payment OF brokers' claims.
such as exist in England. just look at the
present situation. The broker demands ten
per cent. i've per cent, or less. according to
the standing and persuasiveness Of the opera
tor. 1 have known cases where the broker
received only one per cent. although he
didn't like 1t. I know good many brokers
who soy that they would prefer 1t II
margins were abolished. but the trouble is
they cannot secure any protection. Tho aver
. nge s broker stands % no chance. You know; before
customer who has failed 70 make, good his
sambIins: anyhow, and n nds HSsa asa!nst the the
broker. Under such circumstances. OF course.
the broker isn't anxious to give up the little
security that the margins afford.
But how, much better 1t would be IL tho
we're secure. and could abolish margins. One
of the most important results would be that
speculation would increase and dull markets
would be rare, Men will always buy more
The tailor's bills Of n man when no has 10 pay
cash and when he has credit. and you will see
he idea illustrated In concise aud practical
orm. Men are not different from women in
considered also. for we all know there are u
good many who speculate in the Street. Give |
woman credit In u dry goods store or iewelry
hon. and doesn't she Just lay In things by tho
Wholesale?
The influence Of credit is by no means
hat even millionaires will buy more II they |
ion't have to put up cash. have known in |
peeuiato on tips furnished i By brokers' ev who a
mid they were 80 sure OF their Information |
hat they wouldn't ask the millionaires to nut |
~ any margin; That was clever. wasn't It |
zone into the deals ut all II they had had to put
:. So far as can see from your argument"
Ed as Hsy yoDi Ss to pree
Not at ALL" replied tho veteran. Every
nan who has speculated knows that there are
lines when every dollar he can control is
,orth ten to him. and II margins were not re-
ions to successful issue that he now has to let
o with heavy loss"