Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-08-20
" " " " ~ NJ. ~ " " AsaE " Y " 4Nz4A
THE INSIDE OF
WALL STREET
BY EDWIN LEFEyRE.

The attitude of the great market interests
has puzzled the Wall street professionals
only a trife less than the indifference Of
the public toward the speculative markets.
Conditions throughout the country appear
to be bulish but the public has not been
trading actively and prices of securities
are high. Therefore 1t becomes of vital I'M
portance to guess accurately what the big
men" propose to do. That many of the pro-
fessionals are not ardent advocates of fur
Their advance Is doubtless due to this ignor-
ance of the plans" which the big men have
under consideration. That Is, they think so.
The average professional firmly believes
that the big men always have something or
other up their sleeves; something designed
to facilitate a Campaign of distribution"
This Is true in measure, since the big men
work pretty steadily and 1t is their business
to make improvements and develop proper
ties and finance them. which means not only
the creation of securities. which Is easy.
but the sale of them. which is not always so
easy.
But where the sapient little professional
goes wrong Is in his inability to see that
lis point of view must necessarily be differ
ent from that of the self-styled constructive
''fnanciers" and "upbuilders." The pro-
fessional thinks Of the future but his future
means tomorrow or at most next week. The
big mems" future sometimes Is tomorrow.
but oftener 1t means next year. The small
speculator looks upon a stock market prop
ositon exclusively from speculative point
of view, while spectators of the magnitude
of Mr.. Morgan or Mr.. Harrtman-for all
that they are spectators In the strict sense
of the word-must view developments from
the point of view of the investor. 1t Is to
investors that they wish securities to go.
They are wholesalers; they must sell their
wares not only in bulk, but sell them where
mil ctn HAY haU a
tons that the little gamblers have not. To
sell stocks at 80 and to find them selling at
60 a few weeks later would wreck the most
valuable asset they can have. which is the
confidence of the mob. The big men have
been optimistic for some months, but they
have not been aggressively manipulating
their market pets; that Is, not aggresstvely
enough to make 1t tantamount to an ofncial
announcement of market opinion. But les
ser capitalists here and there have loaded
up in anticipation of rise. and altogether
the recent advance has been somewhat dis
appointing to a large number of profess
SIGNALS.
OF late all the big men" appear to have
learned wisdOm-the wisdom of making
haste slowly. They know that while specu
lation serves a useful purpose in high
finance. there must be something more sub
stantial than stock craze X their
own fortunes are 10 Dc supStdntida. IHcy
have begun to think that 1t is not only phil
anthropic, but intelligent. to give value for
the public's dollars. Dishonest tips" have
lately developed a habit of coming home to
roost The point of view of the professional
remains as it always has been. That Of the
high fnanciers has changed. 1t was about
time 1t changed. and it has. This Is really
very important. and X 1t continues the en-
tire country will have reason TO congratu-
late itself. because 1t means spread Of de-
cency.