The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-06-05
THE TNVESTMRSr MdRKEE.


like nearly all previous catastrophes OF the
same sort to general collapse OF credit. COM
pcIinz the banks to contract their onns. and
thus drive borrowers into liqudating their
colln'erui-. but to Il spontaneous selling on the
part Of the public. inspired by the conviction
that the prices OF speculative fancies we're
higher than their intrinsic merits warranted
and that the time had come to turn them into
money The conviction began TO show itself
several weeks ago. but it was temporarily
checked and the selling TO which II led was
followed bv renewed buying. The passage Of
tho Franchise Tax bill Gavo IL fresh vitality.
the death OF Mr.. H. p. Flower accelerated its
growth. and the war between the city gas COM
panies coupled with the disastrous failure OF
the Amalgamatcd Copper stock issue. matured
Il forecast Of the commencement OF gold ex-
ports which was announced on Tuesday after
noon. may have aided to extend its influence.
but this was an unimportant factor in creating
t. II Is worthy of note. however that the stocks
I'm which the most conspicuous declines took
place have recovered from their extreme low
est point and. cXrent gas stocks, still rule
higher than they did six months ago. so that
the holders Of them. unless they came in quite
rerenty have suffered no loss.
Asusual. when such breakdowns occur. a
great deal of nonsense is talked and printed
about the Vaccinations which are supposed to
have produced this one. and about support
Ing the market against it. Undoubtedly. ar
tlnces are employed both by those who have
stocks to sell and by those who wish to buy
them. to promote their designs but they can
necessarily have only limited influence and
cannot prevail against the combine judgment
OF the mass OF operators. Nor can the logic OF
the facts which demonstrate when prices are
too high or too low. measured by real values. be
thus overcome. Men may he deceived for while
~ m
they discover the truth. and act upon It. The
most reckless Spectator. who buys merely to
sell again. buys upon the belief that he is pay
ing less for what he buys than it is worth. and
that some other buyer will eventually take 1t
on his hands at an advance. IT, after waiting
awhile this expected rescuer does not come
forward. he begins to suspect that he has made
mistake and hasters to correct 1t by unload
Ing II he is heavily burdened he may strive
70 retard tho fall in prices, which his efforts
20 sell tend to produce. by ostentatiously
buying back some Of the same things
which he is selling. and for doing this
Ne is often praised 10y the minimizing as
a public bencfactor. 1t also frequently hap
pens that when a sudden fall in prices oc.
ours men who really believe that the fall ia
not justified take advantage OF it to buy. but
they are inspired with the hope Of getting bar
gains. and not by the desire to benefit other
people They do not support" the market
until they think that " has gone so low that
other buyers with as much money as they have
are likely to anticipate them. and 1t ia to give
the impression that such Is their opinion that
those who support" prices in order to sell
on better terms make their transactions
On the other hand. it Ia also true that when
prices are falling. men who havo no stocks Of
their own. but judge that they are likely to fall
still further offer to sell them with the expec-
tation OF buying them in at profit for delivery.
The offers OF these m en- apparently increase the
amount Of stocks pressing for sale and thus
increase the d depression in them The effect IL
indeed untavorable to the sellers OF real stock,
but il is also favorable to investing BUYERS, who
thereby get supplied more cheaply than thew
otherwise would and it sometimes benefits the
sellers OF real stock by bringing in as buyers
the men who have contracts for delivery
Abundant proof that the only genuine and
lasting support OF the prices OF stocks is that
which comes from the demand for them as in.