Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1919-12-04
Reckless Investment Followed by
Heavy Losses When Market
Goes to Pieces.
GOVERNMENT SECURITIES
REMAIN SAFE AND SOUND
Uncle Sans Bonds "Good ~ Gold"
While General Slump VICES
Out Fortunes.

New 1ork--SSmtpa nicEy 0eclii.eS
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.
vaneed. slowly at first and with the
usual 'profttaking reactions" and in
recent weeks going up by leaps and
bounds In some departments Of the
market, notably oil. motor and other
industrial" shares Then In a few
days 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
II beyond reason. Eastern market
reports for months have carried men.
ton OF buying by 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 rote issues
called for hundreds Of millions Of dol.
lars. Issues Of preferred stock alone
since Jancary l have totaled more
than $500 100000 and common stock
. billion more. Foreign loans with
more In prospect to finance Europes
buying added to the burden. The
immense buying power Of the coun-
try shouldered 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 16&. the next week to 20Go and last
week to 30s. the highest point since
the panic Of 1907. Renewals touched
lt%. the highest in years, and time
money hit Sc. The advance was q
warning from the banks TO 90 slow
Pools" and 'tipaters" began to draw
IN their horns
The decline WAS orderly until in
sufficiently margined accounts were
liQuidated. Then came . smash
General Motors new common stock.
which had scared to 406h dropped
to ESQ. Mexican Petroleum from
255A to 1855, Texas company from
3Sk To 2S6, Studebaker from 143k to
loSx. American Tobacco from 3e7A
to 24o. Crucible Steel from 235
70 209 and 30 on down the list.
Even U. s. Steel. the porverbial mar
ket barometer. declined from ll2x
to lo3.
The break extended throughout
the list, less marked Of course in
lower priced stocks. The bond mar
ket also suffered.
Psetls 81 Speculation Shown.
Since the culmina ting slump there has
been recovery ranging from z or point .
TO around 20 TO Is points In stocks which
suffered most on the decline but down
swings followed the recoveries and the
marked atmosphere is not yet considered
In q nutshell . speculative erase set
the banking interests and the Federal
Reserve Board against overspeculz ton
and the crash came.
No better illustration Of the psrmanen nc
and nsea vain: OF gov.rnment securities
tied market. War ssvinss stamps and
Treasury Savings Certificates and
Liberty Bonds continue their interest
bearing career unaffected by the storms
Of financial stress that overtake ieas
favorable securities