The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-08-03
OF FINANCIAL INFATUATIoN
Attempt TO Find Out Why Suckers
Can Be Buncoed

faced "get-rich-quick concern in that
city. It was the familiar old fraud: per
cent. a week promised, and paid for a
period; every lucky investor telling his
neighbor. and whole villages rushing to
put their savings into the hands OF IN
known swindlers. Such monstrous ere
| dulity has been too often exhibited, on
too large scale and in too many coun-
| tries to leave one in doubt that there
must be natural explanation of so CO.
| lossal an infatuation. The same human
nature which, in the more ignorant, rem
ders possible the egregious dupes who be-
lieye that money can be made TO earn
go per cent. leads even apparently in
telligent people TO betray, in financial
matters, gullibility which makes them
the prey of the INSCRIPTIONS.
There is, we suppose, a psychology of
the imposed upon, as well as of impos-
ture. Hoaxes play skillfully upon the
nature OF the hoaxed. Even in such pop
ular madnesses as the popish plot or Sa-
lem witchcraft, or the Dreyfus trial,
there IS a method. if we are but able to
detect It; and in the whole range of crazy
notions about investments, which aff1ict
1
are certain principles of reasoning and
motives of action which account for their
| disastrous falling into the snare of the
| spoiler. One OF the leading victims of the
famous Humbert swindle has lately been
giving to the Paris Figaro an account Of
the steps by which he was artfully led
along; and his confessions are instructive
in the rationale of such gigantic cheating.
He, with a few of his friends, loaned
the adventures some 100000 francs. OF
course. they had what they thought TO be
security, and they were practiced upon
by all the extraordinary astuteness with
which Madame Humbert lulled the sus-
picion Of her dupes; but still, over and
above every supposedly legal form of Sc
curity, they had certain signs to go upon
which made them confident all was safe.
One Of them, oddly enough, was the high
rate Of interest paid. This was Z per cent.
The current rate is 4. BY all the ordinary
rules of logic this should have excited
distrust. But in minds aching to be gull
ed it was. rather. a powerful reason for
trusting Madame Humbert with millions
She must be absolutely sure of winning
her suit and getting her fortune of So
100000 francs, else she could not afford to
pay so much for the money she Temporal
rilx needed Is not that plain? BY the
same triumphant argument, the milliner
of Appleton. Wis, refutes every doubt
about the nature of the business of the
Chicago firm which was paying her s. a
week (for three weeks only on her 500
investment. why, it must be an i'm
mensely profitable busneas, otherwise
-, 4
interest -
Another bait at which this Humbert
victim eagerly leaped was what he called
the influence of the ''millieu." There
were so many notabilities and politicians
connected with the Humbertsl Why, he /
says, every time I went to their chateau. /
1 met there crowd of deputies and min
listers and senator's: I saw there the wife /
and the daughter of a former president /
of the republic; do you wonder that 1
was hoodwinked"
1t is not only in France that such shad- /
ows OF mighty name confuse and de- /
ceive the unwary investor. Many an old 1
lady justified her plunge into Amalgamat- /
ed Copper last year on the ground that /
she was assured that Rockefeller was IN /
it. That was enough for her. So for /
others is the presence on the list Of di-
rectors of some glittering name in
finance. DO you suppose he would be a
director If the enterprise were not sound?
AS Cor the alluring power over the hest
tant investor which a great politicians
name has in the prospectus. or on the ex-
ecutive committee. every ones memory
can furnish striking examples From
ha 4 ]
upon General Grant. and then used his
name and the mythical army contracts"
to wheedle money out Of his victims.
down TO the antics of Tammany Office
holders in the American Ice company.
we have had illustration Of this way Of
bamboozling the investing public
What is obvious is that promoters count
positively upon the existence Of vast
numbers Of people with money that burns
in their pocket until they can throw it
away upon some insensate scheme. Il
Is species OF financial lnfatuation that
counts up its sufferers as regularly as in
sanity. Only. unfortunately. there is no
way by which the state can shut them
Up and take care Of them. They are con
Linually renewing their numbers. and
constitute that great and gullihle mass
upon which unloading can always be
done. EdHcation seems not
10 enlighten nor experience TO teach
hem. They start out with a hope FOR
nordinate profit. oh I must have my
per cent. or I can not live" said a
maiden lady, typical o. many. To this
Fery natural desire the clever appeals of
he shrewd advertiser come with over
shelrning temptation. People do not stop
o think that millions are going begging 3
or investment At per cent. and that Z a z
nan offers or 20 It shows couclusiveiy
hat his security Is not good They do
lot make their ignorance a warrant for
autiol. but for rsshness. and ALLOW tbs
act that they have not the siight-st idea 9
low money IS uads n stock speculation
G justify them. not in keeping out but IN G
ushing Hadiy in Every such period q
ctive markets and new enterprises as
hat We have been passing through IS
marked. IN the end. b. wreck q snail
INVESTORS al over the country who have Q
~ their little boards into the ga1sg npb- 2
les ~ The hour wirh bouu6leSs cresEiity- 3
: Is Undoubtedly q ki1d q n1anfa-uot .
Re furv 4 q crowd OF the passion that a
moves whole people-buf a sort q os--
ession that goes silently over the iaz@. 2
.nEliuE out here q boarding house keeper ?
"a there a splnstsr cherishinE re- srnau p
Inheritance. and leading them 70 embark g
asiT al 81 enterprises which bear on
1sfr face az TIE signs q Instability or