The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-01
CALLS RUSH TO BUY
STOCKS 'DEBAUCH'
"Financial Chronicle" Urges
Exchange to Put End TO
Present Conditions.
1T SEES MANIPULATION

financial journal OF the country and
probably the most conservative calls
upon the Stock Exchange authorities To
stop II. The leading editorial Of tho issue
Of yesterday decries the speculation in
scathing terms. The speculation Is mn,
based on values that are permanent,
says the editorial. and therefore for the
protection Of the innocent public ,hs
rank manipulation. which it charges is
apparent. should he halted. The Chror.
tcie says that the paper itself has no
knowledge that such manipulation Is 70.
ing on. but asserts that there must b.
manipulation. Investigation by the
Stock Exchange Of every order and thu
tracing Of II 20 establish whether there
Ia manipulation is suggested.
"Tt Is time to call n halt on the p.r.
formances that are 10 being witnessed
on the Stock Exchange" says the Chro..
tcie. THE speculation there being car.
ried or is OF the most daring and reck.
less kind n unless quickly brought
within proper bounds must sooner or
later end In disaster.
THE great imitation of value that ia
taking place has az it's ssuned basis
absolutely nothing except the eXpecta.
ton Of large profits to be derived from
the execution of war orders. chiefly
ammunition supplies and the like.
Such business is obviously OF the most
hazardous kind, and additional reason
for caution exists In the fact that thu
bulk OF the orders are going, not 10 cor
Germs regularly engaged in that class o,
work and therefore familiar with its
nature. but to outside concerns who
have never previously been engaged In
anything OF that sort and who are now
turning from their ordinary business 20
this new line because OF the prospect Il
large profits which II offers.
There may be large immediate profits
twaiving altogether the question ~
risks). but these large profits cannot IL
any event last very long, and tho per
manent value of the stocks OF companies
enjoying such profits must In the erd
depend entirely upon the course Of 'heir
ordinary legitimate business,
But the prospect Of these large profits,
albeit OF a very risky nature. is being
dangled before the eyes II the public a'd
Q gigantic speculation is being carried o7,
evidently by powerful Cliqucs, with tie
view TO utilizing this situation and tho
known gullibility OF the ordinary citizen
for the purpose OF cnriching tho men,
bers OF these cliques. With this idea n
mind. prices are being boosted p" absurd
levels.
THE reprehensible character o, tie
proceeding is too patent 20 need urging
Nothing is more certain nr more newt
able than that in the end the guilecss
outsider will suffer serious losses and n"
whole artificial structure of inflated pr'cs
levels will collapse. This means. Tn plain
language. that the public as We'll u
some OF the hab!tues OF the exchange
will be fieeccd.
I'VE do not 60 so far as To assert
that the exchange should declare a stock
'cornercd' simply because II has had a
tremendous rise and Is now apparently
In limited supply. o obviously would
any one who has given the subject
serious consideration urge that IN"
stock Exchange should act the part -
censor on dealings or undertake to- set
a limit as to how far prices shall adj
vance, nor yet undertake To regulal"
the extent of the dealings from day to
day.
There Is one thing. however. II seems
to US the exchange might do and that
II To Investigate and scrutiniz" 'h"
transactions with great rightly from
day to day for the purpose Of dctcrm.n'
ing how far the enormous dealings 10
the stocks which have been whirl"d mp
with such great CELEBRITY consist ~ nor
NAL. legitimate transactions and Row
far they arc wholly mau9ulative IN
character. II is conceivable that vll"r"
a stock has been heavily oversold Some
scare on the part OF the shorts Nigh
cause a large influx Of buying orders
all Of a sudden to cover outstanding
short commitments.
But the huge business beng done m
some of these war stocks Is not ~ mat
character. 1t Is not ~ MA
the share transaction IN any gwen
stock for a single day aggrrga''"c one
half the share capital, and even H'i' n
special cases. This, Of course, Is un-
natural and illegitimate.
III there were confident Investment
buying or even confident speculative"
buying the aggregate 81 transactions
nigh reach heavy totals ou any gwen
day, but the movement would hardly
keep up to the same volume day after
day. And yet that is now the record
THE purchasing orders may "man''A
from n hundred different sources, "t,
there is every indication Of cuu''r' ~
action or movement and of a d.r"e' q
mind or minds, all operating 10 ih' same
end, behind the movement.
THE Stock Exchange would b" jus
hed. therefore, I'm applying cnrrr'i.Nha.
metnONa4 Ley IL I'N'f'h w 80
the persons engaged In these nef'r oHs
schemes. some Of whom are eN'l''''
financially powerful, and let II dcNo'" -
energies to eliminating for the 'N'.r-
such transactions as reflect d.SCr'i' ~
the exchange. Two years ago en- Ia'n'
AIRY. 1879 when certain sN''i.'''NH
movements IN American Can ''v'N'
sharp criticism and were looked up'n A.
man,pulatIvs In character the S'o,N hN'
change made an investigation ana -
next month declared IN" 'ransa.''''
free from m~anirulatire taint
ION the present occasion the i"v""
CATION would have 10 go deeper EN"N
order would have 10 he traced % -
source,
I'VE have no personal kno1le's- "'
ma nipulat,on, but that there u pa'qat'A
manipulation is evident from ~" zeal
ings. There are the widest Kind ~
fluctuations. and Yet the market s No
ing kept under perfect control 'nr 80
time being, though OF cours" NO re
knows when this control may hr r~'.-asei
and the inevitable collapse prH".p 'A'''
In not a few instances there - -e1''l
10 believe the outsider Is hcine T'F''
both up and down,
THE Stock Exchange has aT9'H
power to trace the business Ia X 20 IS
source, for 1t has fun authortty - f"
anime the books Of all Us members
The examination. however, sh 'ulf no' PED"
superficial, II must be thoroughs''7s
The stock Exchange authorizes T3-
proceed AZ the District Attorney "oN ]
in ferretIng out crime And d't'r w..
offending parties have been ds'''-'"
further dealings with them or Tor 'N"'
must he prohibited,
would not the stock E>charG" g.
IN general estimation If II adopted ~
a course would not the effect 10" '.
StTappthap con fil.tsa ia IN. lv1HE~ r