The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-16
MONEY AND SPECULATION.
Marginal Trading Has No Relation to
National Currency Needs.

A very interesting man is George Evan
Roberts, director of the mint. He started
life as a printer and became proprietor of
the Fort Dodge Messenger at twenty-one.
Some of his writings are "Coin at School
in Finance" "Iowa and the Silver Ques-
ton and Money, Wages and Prices"
Hear what he has to say about Wall street
and stock speculation: mo possible sup
ply of money can prevent such periods of
monetary stringency as We are now going
through. because speculation and rising
prices will absorb any increase until the
pressure for ready cash is just as great
upon the new plane as ii was upon the old.
The cry for more money is as unappeasable
as the demand for more wealth. A new
supply, instead OF satisfying the demand,
stimulates IL. Men want money to buy
things with-good things that they think
are going higher.
When banks have easy money" con-
tinues Mr.. Roberts, they encourage bor-
rowers. AS a result stocks go up, and as
they rise many people want TO buy, and
so the demand for money increases. You
cannot furnish money fast enough to meet
the demand or ali who would like TO borrow
While prices are improving, nor could ali
the gold and silver mines in the world to-
gether keep prices going up forever.
marvellous era OF increasing money began
in 1850 and started a period OF wild specuia-
ton which ended in the grand, worldwide
smash OF 1857, when even the Bank OF Eng
land had TO suspend payment, without any
decline in production and with the minis
everywhere open TO both gold and silver
THE real trouble is brought about by
trading on margins. The people who are
crying that they have been forced to throw
away their property have never paid for
their holdings. They borrowed money on
call to make small payments, hoping that
a right turn in the market would give large
pronts. But in that class of operations
losses come as easily as profits. That Is
one of the conditions or the game. When
they have profits they call II prosperity,
but when they have losses they think the
country has come to stadstill and want
to know who is to blame. Nothing has
harper I'd except that they have been asked
TO pay what they owe.
1T Is impossible to do away with such
speculation by any increase in the money
supply. If stock selling at 800 share
owns it outright makes but 10 per cent.
while a speculator who has UP only mar
gin of $40 makes 100 per cent, That is the
secret Of marginal trading In short 1t is
enormous imitation OF credits. multiplies
the bank reserves required, and thus alb
serbs any possible money stock. Specula-
tion greedy will inevitably do 1t, and as
1t is obviously impossible to satisfy that
appetite it is absurd to point to tight
money market as proof OF an insufficient
supply of money"
The bucket shop is a more damnable in
stitution than the poolroom, because the
men behind the pOolroom are more honor
able than those behind the bucket shop. l
have never known poolroom proprietor
to WEIGH. A winning ticket is as good as
a check on the Chemical Bank signed by
meet their Obligations. x Wrong turn in the
| market ruins them and their clients lose
everything. But what a dirty. nasty.
sinking. contemptible business both are!
the gutter and his family into the poor
house borrows his quarter or half-dollar.
gets tip on lead-pipe cinch from his
barroom acquaintance and bets on the 10
| toll chance. which ninety times in 100 is
among the "also rams" He hovers about
| in hope. learns that his horse has lost and
disappears for the day in the slough OF
| dependency. On the morrow the deluded
fool, instead of looking for work. looks for
| another tip, another quarter and dozen
II i he could bet a dime ee or cents he would
| do it-and spend the winnings on rum.
An eminent divine" is slated to assist in
April r. win he drive out the money e
changers from the temple Of Mammon!
| Nay, nay! What will his prayer be? Honor
be long upon the land which the Lord thy
| God giveth thee?" Not much. Honor the
| ALMIGHTY DOLLAR that thy purse may
be long, do up others as they are trying
| to do thee" Bear or bull false statements
about thy neighbours stocks" do not steal
anything smaller than a railroad, and IT.
| rigate it with no fiery spirits" "Exalt thy
| self and humble the fellow whose margins
are exhausted" Borrow money at per
| cent. and carry your clients stocks at g.
| There are many preachers in the street
The vice president of the gold board was
| one of the most eloquent of Presbyterian
, ''divines." You recollect Hoyt.
When man goes into blind pool he is
| supposed to go blind. 1t is none of his bust
| ness what happens. If his money is wiped
| out he must grin and bear il. He is not
| entitled to sQueal. The world hates a
| suuealer.