New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-16

realize those profits AS there are those
who realize their expectations and sell
out at profits.
The only distinct difference between
other forms Of speculation and stock
speculation is that the buying and SELL
ing of stocks has a more active market
than the buying and selling OF real es-
| tate. The gambling element OF the
stock market is one which is contrary
IN the rules OF the New York STOCK
Exchange, and should be and doubtless
will be corrected as a result oil the
publicity attained by this investigations
one of the points which is held up as
q terrible exhibition of irreguiarlty Oh
the Stock Exchange is the fact thd'
tho volume of stock recorded In uaS
transactions represents an extremely
large amount compared with the actu"'
transfers of stock made. This is not
strange. as stocks are bought on "hal
are termed margins, which are pracu-
cally partial payments. II man pu''
| 100 shares OF stock and puts up ihaH
gin of ST. he is in the same position
of a man who buys house ana Hldhes
q payment of 1000 In both cases the
balance of the money must be pald
1 before a transfer of either the stoVh
/ ar the house be made to the purchaser
/ The man who buys 100 shares OF STOCK
and makes a payment of $1,000, may
nay the balance and take up the STOCK
or he NAV sell the stock again II he sees
profit in It without having the STOCK
transferred to his name. The man VINO
purchases a house, il he sees an oppor-
tunitv To sell that house at proht De-
fore he has paid for it in full may 10
en-. and the house need not be deeded
to him nor need his name appear IN
the transfer of title.
In the same way the house may De
sold fifty times or one hundred times
and still there will be only one mousse
But multiply the transaction, ana IL
will show fifty times or one hunoreo
times the value of the house In the
total amount represented. This same
idea is an explanation OF the large VOL
ume Of transactions on the New iork
Stock Exchange and the comparatively
few transfers of actual stock. The law
of supply and demand governs the
legitimate price movements on the
Stock Exchange the same as 1t does
in realty or commodities. There have
been abuses In the past which have
been properly credited to members OF
the New York Stock Exchange, but
that does not signify that the ex-
change is not an exceedingly I'M
portant institution, nor does 1t indicate
that a majority Of its members are not
representative high class business men,
who are opposed to all forms of irreg-
uarity. 1t is not fair to condemn an
institution simply because some Of its
members do not live up TO prescribed
rules. 1t would be just as fair to con-
denim a Church for the backsliding of
some of its members, or 10 censure
clubs because some members violate
house rules and at times cast refec-
ton on their organization.
so many factors enter into the move
nent Of prices of stocks and bonds that
nuctuation must obtain and both
periods of depression and optimism
must alternate as the result Of nat
ural law.
In the mean time. while the public is
being entertained by reading lot OF
testimony brought out in the investiga-
tion at Washington. apprehension and
the sacrificing of values are following,
which will mean heavy losses TO many
small investors, who have been de-
pressed by the admitted irregularities
which have been ignored
1t would have been better had the
governors of the exchange anticipated
the present by enforcing the laws Of the
exchange regarding manipulation and
wash sales regardless Of fear or favor.
1t is TO be hoped that a calmer under
standing Of the true worth OF this in
stitution may be recognized and that
no extreme measures shall be intro
uuceu Wnlcn may hamper Ine railroad
ana industrial development Of this
country as would certainly follow
should Congressional legislation be en-
acted, as has been suggested by the
extremists.
No investor who owns good securities
should be unduly alarmed. Fundamen-
tai conditions Of trade and industry
apparently are sound, and there is no
indication Of Iessening Of earnings or
decrease in dividends as a result of
the present attack on the methods of
the New York Stock Exchange.
COMMERCIAL REPORTS