Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1902-11-29

are made with freedom speculation ~
rampant. aud the bank statements stlll
look as " all the money ln the country
had been gathered together In New
York Then the turn comes with the
demands from The west or even inde-
pendent OF these when loans have ex-
banded too freely and calls for cash
come unexpectedly. in the queer way
they have and which even the wizards
cannot always explain
one of the paradoNes Of finances u
that bad bank statement may be
good thing A bank statement Is bad
tWhen the reports from the siXty-one
CLEARING house hauslt OF New York on
any Saturday SHOW that The surplus re-
rcrves OF money are lower than eX-
perience and banking rules and gov
ornmeutal restrictions have decreed
that they should be Sometimes this de-
pletlon is due TO poor business condi-
tlons sometimes 20 excessive prosper
lty II was directly tra@able 10 pros
reritv all over this land that the So
called bad bank statements caused
slump In speculation and moved the
secretary of the treasury to release
large sums of government cash for the
relief Of the strlneency
NAflulf AlAl liNlHl ANiltN NVNNN'if VII
money had risen to 20 per cent. Call
money Is that which Is loaned from day
TO day. and can be demanded at any
time. and II commands a higher rate OF
interest than time money which Is
lonned for definite fixed period When
the bankers find their cash growing
low. they call IN these day-to-day
loans. with the result that rates of in
terest 20 up and the prices of stocks
upon which none" can be realized
usually go as swiftly down Along
about that time some men begin TO
tear their hair and sell their automo-
blles.
So Il happened that the shrewd spec
ulator watches the bank statements
very closely, though he doesn't always
know lust why. With all the vast sys-
TEN of credit, OF commercial paper
(promlssory notes OF T.rchants) stetl-
ing exchange drafts drawn by New
York banks on London banks) cotton
bills drafts drawn by southern ship
pers on New York agentsl. and domes-
Tie exchange drafts drawn by bank
upon bank for various purposes OF
business) with all this complication OF
paper there IL Of course little money In
sight but 1t must be ready 10 hand
somewhere When the banks have not
enough TO support all the fabric OF In
dustry and speculation, then the trou-
bic begins.
FAMILIAR WORDS OF THE
STREET
1t was said the other day that certain
stocks fell off and points, The word
point" has various meanings In differ
ent exchanges. In the wheat pit II Ia
gradually dropping out OF use. the
brokers speaking more frequently Of
grain quotations In terms Of fractions
Of rentlas an eighth or a quarter
on the cotton and coffee exchanges q
point Is one-one- hundred OF cent. on
the New York exchange a point is
equal to "A dollar a share OF the par
value of 500 II a stock opens at 2S0
and closes at 22Sh. 1t has lost ls. points
during the day
Familiar words OF the street are
Short interests" and "long interests"
Going short of the market means SELL
ing stock that the speculator does not
own, In the expectation Of its going
down to a figure lower than that az
which he sold II. and thus enabling him
to take profit on delivery. TO go long
on the market Is to buy securities In
expectation OF rise When short
interest IL covered" the man who sold
the stock short Is buying II back,
whether NJ a loss or a profit,
There Is a popular rhyme in Wall
street which says!
lie that sells what isn't hls'n
Must either pay up or 90 to prison
1t Is seldom as bad as that however.
In an item concerning Russell Sage
few days ago. the newspapers said the
aged financler had OF late years almost
ceased TO deal In puts" and calls"
These words refer TO the simplest type
OF gambling In Wall street. A put" IL
the privilege to deliver 20 the maker OF
the contract certain number Of shares
OF certain stock at given price with
In stated period. A call" is a con-
tract 20 cali for a certain number of
shares at fixed price within specl-
fed time. Men who deal In puts and
calls are guessing whether the stocks
concerned will go up or down. Through
all these mutations the actual exist
ence Of the securitlse dealt In Is OF
small consequence, The margin OF
profit or loss by comparison OF today's
quotations with those Of yesterday Is
the important thing.
These and scores Of other words in
comprehensive to the outsider make up
a vocabulary that Is the outgrowth OF
hurry and nervous energy and utillta-
rian disregard for dlcton. To explain
fully an the technical words that Wall
street uses would be to write treatise
on finance as well as compendium Of
a Technology as confusing 10 the lay
man as that Of any science.-Mall and
Expess.