The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-12
The Disease Has Had an Extended
Run, but There Are Signs That In.
dictate Possible Recovery.
STOCK TIPS" FULL OF DANGER
"sTOP-LOSS" ORDERS AND THEIR Eff
Feet ON MONEY AND PRICES.
Alleged Plan to Shift Control of Bur-
lfngton, Great Northern and North
ern Pacific to Trustees.
Special to the indianapolis Journal

financial district Of New York has been a
disease this year. Apparently nothing can
check 1T, and it has had to run its course.
There are evidences that the period OF re-
covery is at hand, though it must be con-
fessed that the street is still sick. The
shrinkage in securities has been enormous.
and it would seem to have been sufficient
to have discounted all unfavorable condi-
tons urged in support OF the bearish cam
paign. Wall street has been the only blue
spot in the entire country. There no news
has attracted the slightest attention for
months except bear news. The tremendous
activity in every branch of business and
industry throughout the length and breadth
of the land has been ignored and the only
thing heard has been embarrassment in the
securities market due to the overproduction
OF stocks and bonds, and the troubles OF
the underwriters who see their paper
profits of two and three previous years
disappearing. There has been a great ado
over the alleged scarcity Of money, al
though as a matter Of fact there is more
money in the country than ever before
the increase since last April having been
more than s1O0.O00.OOO. and that on top of
previous six years increase of 500, 000, 900.
To hear the bears and pessimists talk
about the inadequate supply of money with
which to absorb securities one would think
that money invested in that form was for
ever lost, instead of 1t being simply me-
dunn Of transfer and to be ever in con-
dition for unemployment in the same way.
The volume Of money in circulation in the
United States is approximately $1,000, 00O, 0vU
The market value of stocks and bonds in
the hands of investors has been estimated
approximately at $4,000 100000. These Sc
curities have at one time or another been
bought with money, yet the volume Of
money is greater than ever before. Money
used for the purchase Of stocks or for en-
ployment In any business transaction has
been likened to dipping out a pailful OF wa
ter from a reservoir and pouring 1t back
into the same reservoir through sieve.
1t is merely medium of exchange, and 1t
| is as liquid as the water which inspired
| the Illustration just given. There is money
| enough to take care of all the securities
| that have been made, whether digested or
undisested. The only question is that of
|. the price at which investors want them.
| At the present time and for several months
| back there has been an indisposition on the
part Of investors to take the goods at the
value put upon them by the manufactur-
| ers. On the great decline which has taken
| place there has been a resumption of in
vestsnent activity. although it is not re-
| fiected as yet in the speculative operations
On the exchanges. That will come later
the whole face Of nature smiles with prom
| Use of abundance.
| Speculative tips" on stocks are full of
| danger, yet it is probably true that two
thirds of the current deals on the Exchange
| have their inspiration from that source.
| A story is started that an insider has given
a friend advice to buy or sell a certain
stock, and this word flies through the Of
fees and across the floor Of the Exchange
on the wings of the wind. 1t circulates by
a sort of telepathic process and becomes
| current in an incredibly brief period of
time. Great numbers of transactions are
predicated thereon. and the market is more
| or less Influenced for the time being. Yet
i'm nine cases out Of ten the tips" are
ei,ner of deesption. Money Would be
made very much oftener by 'coppering"
them, as they have 1t in the market YER
| affirmative value. Experienced brokers and
| traders have learned to look with merited
| suspicion any and every tip they hear.
and when they act at all they are much
| although the multitude continues to place
confidence in the information, which they
| believe to be inspired and which they
hear in every cafe and office in the Wall
| street vicinity
| The manipulation of Amalgamated Cop
| per is invariably accompanied by a contin-
| ued distribution of tips. For a time these
/ tips are borne out by the course of the
| market, and as confidence In them grows
| increasing amounts Of money pour into the
| street to back them. 1t is then that the
| manipulators get in their work. If the ac-
| emulation Of small orders Is to buy for
| a further advance the insiders proceed to
liouidate and take profits stock bought
lower down. If the tip be to sell for fur
Their decline then the pool brokers begin
| result is always the same-the lambs get
sheared and the market jugglers get away
with the wool All through its rt long and and
been tipped for an advance. There has
been a larger and harder-worked advertis-
ing bureau attached to the steel trust than
| any other corporation that ever had its
| securities for sale in Wall street. AT pres
| emit market quotations very few people.
probably not one In two hundred, have a
time since the f1otation of the corporation.
Rull or bear campaigns in Sugar stocks are
always "a inapred tips Whch In the e' end
nroye invariably misleading
II IS the habit Of many spectators, the
! majority of them. in fact, to put in stop
1oss,, orders TO protect themselves against
| the temptation TO carry their deals to
| ,oss heyond a certain fixed figure. This
annears on the surface to be a very wise
| nrocedure. but a matter Of fact it is
aftsntirnes just the reverse. The big COM
,,,ssion houses turn these stop-loss orders
over 70 specialists in the several stocks.
and as the market continues to decline or
advance these specialists become loaded up
nth orders of that description and begin
20 compare notes. The result is the dis
covery that at a certain figure great
mass of stock will be offered for sale or
purchased, as the case may be. This in
formation is communicated on the quiet to
the professionals and floor traders who at
once prepare to take aoVan'ase Oh ,ne
---..,,,on of these orders. As the market
chss tfe figure these crafty market
HAWKS exert themselves to force the he: stock ,c
10 tiss ~ is reached the specialists will
Begin to buy sell REGARDLESS sssp Of what
may - cell 1000 St. Paul at 162, out
ders ar the stock the second that quotation
is and the result b 1s naynr f6r
| Iiss that condition. Before l62 was reached