The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-11-06
SELLING sTocKs "sHoRE"

t,snts fairly began. and while II lasted had
more effect upon rates OF interest than II did
rpon the prices OF stocks. by wednes day after
roon the reaction was in full progress. its In
su.nce being specially felt By Brooklyn
potId Tran IL stock. which rose from about 80
10 Al owe 80. with sales amounting to more
Than $4,000 shares for the day. A speculative
no,smcnt in United States Leather and In
ionc neglected Standard Rope and Irvine.
witch carried those stocks up several points.
.d,el to the enthusiasm OF buyers generally.
And ,l,,alued It to near the end Of the week.
The great rise In Brooklyn Rapid Transit
,,o,S IA attributed. not 90 much to higher es-
vn.te o. Ito value as to the efforts OF the oper-
.,or. who we're short" OF II In cover their
,,,e, under the impulse OF a sudden fear OF
I'm. 'co-ncrci." For the benefit OF the unin-
pl,,oi 70. iers IL nay be a. well to explain that
".lr.," salcs OF stocks are sales made by sellers
rho 40 not own them. but who borrow them
n. Ieivery. or contract to deliver them at
,,,urs lay. expecting to buy them In the
rs,ntIme ut n lower price than they receive.
thus. until they iulnli their agreement to rs-
turn the stock to It's lenders or to deliver II to
e.. bnycrs. they are. like man who owes more
,,,p.v than he can pay. short OF II. II. besides.
.t,b,rur,haslbs supply OF the stock gets
g., tho possession Of people who will not
a. d, Tho -hort selsrs are cornersd'
a. ao..r,. are cornerci In an enclosed
e.I ant rlu.' ray Tor their liberty any price
,bs b ,,r.,i.I,mani. Since too. the interest
,,,ss.e n r. sellers Imre,s them to do all In
n, rors- ~ talk AMI hv scts. TO dsrress or
l.Ar i,w7 'hs prices of the stocks they need
,,..leir 4. iypr,es. they are also called. In the
,A7s " Wa street, bears" just as the opera
,-,rrh have n Ike mo,ivs for tossing prices
rrwa-l 70 the highest rosiblc point. are called
T., ~ - nr>nklrr Ranii Tram
at n, bear, in the stock last week were said
,,fa sh,r: 100 90 shares or more. and thsir
.~,-'s,, bay this quantity o. IL. being supple
n.,.si hva similar c'r'r, on the part ~ the
ru,.,tN par:,cli,ie In the rise Il seemed likely
,srr'!l,-. resulted as has ALREADY been men
torc! whathAr. fnaly. there was loss or
c,- - ;hs short sellers. depends upon the
r. u which th.y had previously agreed to
d.. .ysr .hs a,5,s. hat ~ Il has, lattery. ranged
ha'v..q - 1ui ~. they probably lost.
n, saci!art Is one OF those which happen
4, ,',an iu Va, Street to deserve special men
,oa. anI i.is noticeable now only for the IN
u..a, .ubiaiIon over the discontinue OF the
,h,rts which It excited Under the leadership
e';ha STE Roswell P Flower. the small holders
otEar.i T.an.i; stock had become. at the time
o'hfs t.ath. v.ry nun. rous. and many OF them
kairat very mu'h hlshsr prices for IL than
hsva s.nee prevailed. some OF them. who owed
r,arnr on their purchases. have had % sell out
as 80. AIT thos- who have not sold have
t.ea waiting ''r N opportunity to do 80 "a
s,a7 ~ they could. aai sc: back tbs money
ia-T ~ in. All these people are disposed to
A,r''u;A their losses 10 the machinations OF
IA. ears" and thcy have taken a natural
hmm ls,lsht 10 ss.inE them punished.
Ta-- 'ssliaE oa the subject Is very m ch like
tas' o. the Frsuchnsa In Paris at the recent
ds'.as o,,Ae British ~ the Beers. The losses
G. me bear, have not proated them 10 the
.s.'. but they regard them a. righteous
r.'ribution UPON the bears for their previous
nsi.sis, and for their Supposed align In
faAnss on the welfare OF The community
This An!nosiy against the short sellers OF
s'o,ss IS M: e9nanei % those who suffer
directly bT their operations. All men like to
make noaey and dislike 70 lose a.: aud. as the
great majority o'thsm know OF no other way
- make f. than 70 sell vh,, they buy at
higher p-,- ;hi7 that a. which they buy II,
sv-rJ;haS The7 iGter'eres With q rise OF
prizes .':sr they bay Is disasresabls to them.
Tn -e'ai. !Ai!.r eIpac:s - get more for his
20 Is ihN hs pays to the iobbsr or the whole
c.r: me wholesaler aud the importer expect
. e., Tor more than the manufacturer gets
ta!ihs manufacturer for more than he PAYS to
the POD l,sr Of the raw material aud 10 the
s-',as who work Il up. Speculation. In real
est. especially. proceeds upon the assump-
ia - a !l:urs rise In price, aud never upon
;h'; = ! ~. Thus the interest OF nearly the
ere business world Is 20 have prices 60 up
a.! a.v.r 70 have them go down. For this
reason. $50 even 50 eminent a nnancIsr a.
Secretary Gage deprecatss the contraction 0.
htk .oaas which causes the prices OF stocks
70 al al !av2ts currency erpeiients which
VII preyeat!; il.
a. h = = ~ 70 T.aa frN L.
sca-F'i;on. r.iag prices Indicate prosperity.
tst'A...ns prices the reverse. At this m oment,
The cola;ry Is sail TO be prosperous because
st'jEhsE- producers are getting more m onsy
!'r Tie pr ilc's than they were a short time
iE'. And. s.ace tho cost Of the prod acts has not
y-' calEh: 40 with tn. prices received for
them. the profits Of selling them arc larger
- 'aFas iu'G-t-y IL more active than II was
a. the cap Jymant Of labor more extensive.
III. Prosperity may BE- said t. be real but that
rsnS p7r''. ana the profits that 60 with
t-n. l'e not Conclusive proof OF It. our eI-
rtF-Ece during the suspension OF specie pay
N-tS proves. Then. prices went up because
e'1"L~acis waat down. Everybody who
extraordinarily IL he bought with bor-
r'al in's'y,- apparently got rich. and specu-
ah2h was rampant throughout the land
."eh 10 owe! Tho panic OF 1873 and the whole
'a'fe OF seeming prosperity collapsed
10 the Stock Exchange. a. everywhere else.
'h4 ma" o. operation, GUY for rise. while com-
hra''ey few soil for a fall. This 10 owing.
t''h the hao!t men acquire. as has been said
j. 'h-'' resi ,r business. OF making q pront
On y As..It! for mora than they give. and to
h'' Year o. no. being able TO buy for delivery
~ case ih.y Sc. wha: they do not possess. A
H''a ha' 70 have iong experiences In stock
''e'4.a'oE ant con siderable natural courage
We'R'Fa' T. deliver as n bear does. a stock at
t'4'4'- TINE without knowing how much he
WI, nave ray Tor ii when the time comes to
'1.", Ms contract AMI there are not many who
ca. ID u Many will. indeed. sell stocks which
."h o%" AMI .aJ aside the money in expecta-
"" o. ling able. after awhile. to buy back
s"'. '""i have sold at less than they received.
". 'h' - not selling short. It involves no risk
r''L1 that % thu loss Of the expected profit,
whereas the bear NAV be com PEELED to pay an
'io'o'ahi price Tor the stock no sells short.
u the bears dh no more than sell stock.
M' ulst TO the natural course OF events
Lo'Ah 10 prices which woulI enable them to
,'',"t ~ 'front.', they would still be unpopu-
dt.l . II . Fas.