Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-09-11
Investing Money Made In Hawaii

gold brick schemes?
How much longer will hundreds If people con
tinue TO buy stock in any new "nterpriS" that IS
projected or whose stock is offered for sale either
by huis of local men smooth salesman from
the coast?
Ii would certainly though island people
have had enough lessons in the past and been stnnS
often enough so that they would let some Of these
gold brick schemes alone. On the contrary ii seems
as though almost anyone could find ready market
in which to sell stock
A prominent broker recently remarked that he
had every reason TO believe that and half
million dollars had gone from these islands during
the past two wears into mainland propositions, that
would return nothing the investment or only
few cents the dollar
Some people seem to be borl gamblers and un-
able TO resist the temptation to be constantly spe-
culating. II a man or woman afford to take a
chance and lose his her money, and knowingly
goes into proposition this basis it Is one thing,
but when people of moderate means put their hard
earned savings into speculative mining PROPOSE
lions and others of like nature and lose them all or
large part Of their capital it is a real calamity
Mr. Theodore y. Vail president of the American
Telephone & Telegraph Co.. in a recent number of
the Worlds Work. writes follows: Speculation
for immediate gain is gambling, pure and simple
and later brings to grief all who continue
in it, There are exceptional cases of those making
one or two successes and dropping out, or those
who have died at the peak Of prosperity, but these
Instances only demonstrate the rule.
"Speculation which is investment against future
growth development and is represented by out
right purchase is venture, and to it should be ap
B piled all the rules of venture.
"Venture should only be entered into by those
who can afford to risk part of their capital and
then only not more than can he lost without dis
aster; it should never be done on credit"
Because a few men of prominence in the business
world can we'll afford to take risk, do often take
ttock in an enterprise purely as speculation and
ne q side issue, many construe their act strong
Endorsement of the proposition and Immediately
plunge in and buy without any investigation or
knowledge of what they are risking. 1t is hardly
fair to such to imply that they responsible
for the Interpretation others may place their
acts but they should realize that they have GER
tain influence and should make every endeayor to
zee to it that their names are not used to infu-
ence others to invest simply because they will
ing to take chance.
This likewise applies to the members of the stock
exchange. Some of them have been making such
large commissions in the purely speculative stocks
that they have either consciously or unconsciously
Influenced large numbers Of people to speculate in
these stocks with large resultant losses to their
clients.
It would seem as though the time were ripe for
Ief0rms in this line.
At one of the clubs recently it suggested that
either the reputable brokers should decline any fur
ther to deal in the yellow sheet and highly specua-
tive stocks, or the sugar men should withdraw the
listing Of the various sugar and mercantile stocks
rom the exchange. ... F..
There. is room for serious thought in this sugges-
ton. 1t would seem also though there should
Be inaugurated by the banks and trust companies
Of this city campaign of education in the wise in
restment of money .."...