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

slow long will Hawaii prove an ideal spot for
gold brick schemes?
How much longer will hundreds of "r0pIr con
time I" hny stock in any new enterprise that j.
projected whose stock is offered for sal" either
10y lIuis of local men or some smooth salesman from
the coast?
1t would certainly seem "a though island people
have had enough lessons in the past and been stung
often enough that they would let some of these
gold brick schemes alone. On the contrary it seems
as th0ugl almost anyone could find ready market
in which to sell stock.
\ 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 years into mainland propositions, that
would return nothing on the investment or only a
few cents on the dollar.
Some people seem to be born gamblers and I'M
able TO resist the temptation to he constantly spe
cuating If man or woman can afford to take q
chance and lose his or her money. and knowingly
goes into proposition this basis it IS thing,
but when people Of moderate means put their hard
earned savings into speculative mining PROPOSE.
uOns and others of like nature and lose them all or
large part of their capital it is a real calamity.
Mr. Theodore \. Vail, president of the American
Telephone & Telegraph Co, in a recent number of
the Worlds Work writes as follows: Speculation
for immediate gain is gambling, pure and simple.
and sooner later brings to grief all who continue
in it, There exceptional cases of those making
one or two successes and dropping out, those
who have died at the peak of prosperity, but these
instances only demonstrate the rule. =
Speculation which is investment against future
growth or development and is represented by out
right purchase is venture, and to it should be ap
piled all the rules of venture.
HVpntnre Shoud only he pntprpI. into nv 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 credit"
Because few men of prominence in the business
world can well afford to take risk, do often take
stock in enterprise purely a speculation and
as side issue, many construe their act as strong
Endorsement of the proposition and Immediately
plunge in and buy without any investigation
knowledge of what they are risking. 1t is hardly
fair to such men to imply that they responsible
for the Interpretation others may place on their
acts, but they should realize that they have GER
tain influence and should make every endeavor to
see to it that their names are not used to- infu
ence others to invest simply because they were 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 unconseiousy
Influenced large numbers of people to speculate in
these stocks with large resultant losses to their
clients.
1t would seem as though the time were ripe for
reforms in this line .....' =.-- ~. =
AT one of the clubs recently it was suggested that
either the reputable brokers should decline any fur
Their to deal in the yellow sheet and highly specula
tive stocks, or the sugar men should withdraw the
listing of the various sugar and mercantile stocks
from the exchange. y
There is room for serious thought in this sugges
ton. 1t would seem also as though there should
be inaugurated by the banks and trust companies
of this city campaign of education in the wise in
vestment of money.