The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-04-20
ONE THOUSAND MILLIONS.


The Financial Chronicle IN. I.)
which has the largest circulation OF
any journal among the banks, bank
ers, brokers, and investors of the
Mainland, says that in January and
February, stock companies were or
ganized in the States with an aggre-
gate capital of 81 JOG 300, 900. 1t says:
This total seems almost incredible,
but the dance goes On day by day,
and the American promoters, with
whom Hcoley is only a pale light, are
still maneuvering and combining,
drawing In large amounts Of new CAPT.
tai, getting out large blocks OF stock
and cash BONUSES for themselves, and
preparing for the future ruination of
thousands upon hundreds of thousands
of gullibIe stockholders. When the
end will come NO man knows definite
ly, but that it will come everybody Of
any foresight realizes perfectly well.
He knows, too, what the end will be
when it does come, and whoever can
take in his sail during the next few
months will be wise mariner"
Probably the water" in these
stocks amounts to two-thirds or even
more of that amount. During the
specializing mania, the stocks of doubt
full value generally attract more atten-
ton than those of assured value, be-
cause the promoters of the doubtful
stocks advertise them, and trust to the
credulity of the public.
There is a popular delusion that the
press has a large influence in making
the prices of stocks. 1t may do so for
an hour or a day, but the prices and
values of good stocks depend upon con-
ditionS and facts over which the press
has no control. Were all the papers in
Chicago to declare that the track of
the Illinois Central had been destroyed,
when it had not been, it would brighten
a few people for the moment, but the
truth would soon prevail
The latest reports from the New
York stock exchange say that the
craze for promoting companies for all
sorts of purposes reached such a pitch
that the banks and money lenders call
ed a halt ON general loans. The doubt
full stocks at once fell in value, while
those with merit in them did not de-
cline. This fact is commented upon
by several journals as proof that a
coed stock does its own talking.
The proper conduct of a journal in
times of general speculation, is not
free from mbarrassment.
The legitimate speculations, or in
vestments with some speculative ele-
ment in them, do not require advertls-
ing or comment as a rule. But there
are many facts, such for instance as
the statement made by the Financial
Chronicle, which tend, if published, to
make people more cautious than they
would be if they remained uniformed. !
The class of operators who mainly
trade in stocks feel a personal griev-
hsh depressing facts. Such publica-
tions, it is true, do little good, In boom
ing times, but they serve the purpose OF
good journalism which is to inform the
public, whether the public likes it or
does not like it.
No speculative movement in stocks
has been made on the Mainland, for
many years, upon a sounder basis than
that of our sugar plantations. The
railway properties have been promot-
ed, since the building of tracks began,
upon promises only of net earning and
dividends. So many of the sugar plan
tations make no promises, but show
their dividends, and so many other
plantations base their estimates OF
earnings upon what other plantations
are now doing, there appears to be
basis of speculative investment of the
most unusual character with which
there is no parallel on the Mainland.
At the same time these Investments
are under conditions and limitations.