The Powder River County examiner and the Broadus independent. [volume] (Broadus, Mont.) 1919-1935, 1919-12-19
Reckless investment Followed by
Heavy Losses When Market
Goes to Pieces.
GOVERNMENT SECURITIES
REMAIN SAFE AND SOUND
Uncle Sans Bonds "Good as Gold"
While General Slump Wipes
Out Fortunes.

New Semi-panicky declines
in the stock market and subsequent
relapses from the partial recovery,
with heavy forced liquidation Of light
~ margined holdings of the popular
market favorites on the New York
stock exchange have demonstrated
cleary the dangers of speculation.
For six months the stock market ad.
vanced, slowly at first and with the
usual ''profit-taking reactions" and in
recent weeks going up by leaps and
bounds III some departments Of the
market. notably oil. motor and other
industrial shares Then in few
Jays there has been decline wiping
out much of the advance of months
in some stocks practically all Of the
advance.
There was reason behind the ad.
vance, but speculative craze carried
1t beyond reason. Eastern market
reports for months have carried men,
ton OF buying by 1.-The public" High
wages. war profits. the prosperity of
industry and agriculture have given
many the fever to speculate.
investments Prove Disappointing.
Financing Of new and old corpora.
tons by stock. bond and note issues
called for hundreds Of millions OF dol.
lars. Issues Of preferred stock alone
since January l have totaled more
than $600.00O.0OO and common stock
billion more. Foreign loans with
more IN prospect to finance EurOpe's
buying added to the burden. The
immense buying power of the coun-
try shopldered the load, but specu-
lation in listed shares was getting
out OF bounds. Money rates began
to show the strain. Three weeks
ago call money in New York rose
to 1870, the next week to 300 and last
week to 500, the highest point since
the panic of 1907. Renewals touched
14ec, the highest in years. and time
money hit SO. The advance was a
warning from the banks TO 60 slow.
Pools and "tipsters" began to draw
in their horns.
The decline was orderly until in.
sufficiently margined accounts were
s~SNAu0sOu- lC1l CdHC d SMASH.
General Motors new common stock.
which had scared to 1861 d.opped
to ESQ, Mexican Petroleum from
1854 to ls6, Texas company from
33S to 2S6. Studebaker from 143M to
1OSA, American Tobacco from 3O7A
to 24O. Crucible Steel from 235
to 2OS and so on down the list.
Even U. S. Steel. the porverbial mar
ket barometer. declined from 1924
to 1903
The break extended throughout
the list, less marked of course in
lower priced stocks. The bond mar.
ket also suffered
Periis Of Speculation Shown.
Since the eliminating slump there has
been recovery ranging from or 3 points
TO around 20 to As points in stocks which
SUFFERED most on the decline but down
swings followed the recoVeries and the
marked atmosphere is not yet considered
cleared
In a nutshell speculative craze SET
the banking interests and the Federal
Reserve Board against OVerSDeculat ion
and the crash came.
No better illustration of the permanent !
and fixed value of government securities |
can be found than in the present unset
Treasury Savings Certificates and |
Liberty Bonds continue their interest |
bearing career unaffected by the storms |
Of financial stress that oVertake less |
favorable securities.