The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-05-15
THE TICKER AND
GENERAL BUSINESS

The winter of discomfort which the New
York Stock Exchange has experienced can
not be attributed to the material condition
of business In the United States People are
too prone TO take their barometer readings
from the ticker. While it is true that The
Stock Exchange does not originate pros
perity, it is also true that the Exchange
does not always reflect accurately affairs
as they exist. Less than month ago
the total sales the Exchange fell below
10000 shares in a single day-this. too.
I'm a country OF 100000 inhabitants. Since
II is quite likely that half the volume Of
transactions on that occasion was manfpu-
lative. the record stands as unprcce-
dentec illustration OF the stagnation OF
speculation as a whole. But the country
awoke TIE next day and found that nothing
serious had occurred-that business was
going forward usual. IL Stock Exchange
speculation We're the real barometer of
actual conditions, the inactivity of the
share market might have been interpreted
as rJrteiIdng serious disaster.
Speaking frankly, although perhaps para
logically, business In the United States
\ Is recovering because of the winters de-
preston the Exchange. To be more
exact. the depression in question is a
sign that people are paying more attention
TO legitimate affairs AMI are leaving the
fascinating but dangerous game of specu-
lation alone This policy never ruined a
nation. and never will. Still. return TO
prosperity is not dependent on abandonment
OF stock speculation. Buying and selling
of shares and bonds is a necessary function
IAN accessory TO progress. and at the
proper time the Stock Exchange may
awake TO some of its old enthusiasm and
activity But Ii Is unlikely that the wild
scenes OF 1901-02 will be repeated That
period was abnormal as the recent in
stance noted. when all speculation seemed
TO have ceased The two Incidents con-
traSted snow how much at variance real
and speculative conditions may be- So far
from retrogradinS, the United States is
more prosperous to-day than a wear ago.
meaning by this the existence OF a solid,
underlying basis on which 10 build for the
future. The chan has been pretty effectu-
ally winnowed from the wheat. the water
has been wrung from many pretentious en-
terprises, and confidence is returning The
man who awaits revelation of this fact
from stock exchange records may how
ever. be disappointed. The United States
will not for some time to come have a re-
currence of speculative insanity Its 1901
attack was sufficiently serious 10 insure a
period OF more normal living. But we can
stand stock exchange inactivity with
out particular regret There may be less
Of the spectacular. but on the other hand
more real work Will be attempted and more
progress realized.
And with the subordination OF specuIa-
tion there will follow a gradual return
of what may be termed the proprietfes of
business life. We viii find fewer financial
Institutions and individuals lending their
names To dubious or visionary enterprises.
the underwriting syndicate will be relocated
10 obscurity. and as a cOrrollary industrial
combinations VIII not be forced on the
public regardless OF all considerations ex-
cept the one important fact that the stock
can be or must be sold. The millennium day
may not be much nearer than IL WAS two or
three years ago but at the same time people
have learned something. and are not 10 be
led kindly into all manner OF schemes I'm q
universal attempt TO gain riches without
corresponding effort IL indeed the stock
market does flare up In the next sixty ol
ninety days. the money IN the game will be
found ia the end TO be reposing as IL always
does. IN the pockets of those astute in
divteuals who grow wealthy betting the
public that II knows nothing about specu,
lation worth knowing. and winning out on
this proposition nine times out 0f ten
The FiHancier.