The Prescott daily news., 1919-12-04
FOUNDATIONS FoR MANY roR
TUNES ToPPLE WHEN TRADERS
GET oooD AND READY.
SUCKER BORN EACH SECOND
Fellows on tire Outside With Their
Exclusive Tips Come 70 Grief
and Held the Bag.

II ta41 cD1l&p3e Of ll14Efrzal securities
when Wall Street vent wild recently
and their investments in speculative
securities were swept into tbs discard.
without -ssssSs u value Jeff for
cancellation. viii probably never Be
known.
The newspapers are prone 10 pub
hsh lengthy articles about men who
invade the bulls and bears dens on
Wall Street and rrest fortunes from
those wise old gamblers. The men
rho win these fortunes are never so
modest about letting the world know
Of their good fortune az they try to
appear. and the story is seldom slight
Cd in telling In other words, one may
safely discount the amount alleged
TO have been won, and then leave a
safe margin for the imagination Of
both the writer and the speculator.
But losers hold their heads down in
shame and are silent az long as pos
sibIe.
OF course there IS legitimate trad
ing" in New York and the other large
financial centers Then there is a
great volume that bereft OF the fechni-
cal terms means Just gambling, pure
and simple. And II was this class that
were swept on their feet In the recent
Wall Street furry.
In this latest collapse, however,
were several entirely new elements.
Chief among them was the entry into
the New York speculative whirl Of
brand new crop OF millionaires. These
gentlemen acquired untold wealth In
supplying war materials, or In the I'M
precedented advance in all commodity
values during and since the war Being
ambitious TO further augment their
gains, they addressed themselves to
speculation In stocks, and for timo
II was all cold turkey" with them.
Much Of the values Indicated in the
quotations Of many Of the stocks were
fictitious. The prosperity was build
ed on fimsy base. and the collapse
was inevitable. And, az usual, II was
the small fry," the investor in the
provinces" as New Workers term all
the rest OF the country not contained
in Manhattan Island, that bore the
hrurt Of the eruption The cId-timers,
and the men with experience and
money enough to carry them through
their planned campaigns, did not lose
their all, like those poor fellows who,
successful In their own environment,
pitteL their wits and their dollars
against the wits and the dollars OF
that remorssless gang OF Wall Street.
and are left holding the bag.
There was warning issued long
ago by the men at the head Of the
Federal Reserve System The In
formation disseminated by the agen-
cies Of the United States Treasury
Department issued warning after
warning. But those who went down
in the financial maeistrom would not
heed. The bankers withdrew their
support. Call money went up TO 80
per cent, and thus money to complete
the transactions became prohibftiye.
The outcome has developed the fact
that It is srfectIy well and right to
invest in wsll-seasoned standard
stocks and bonds, but dubious special
ties and untried issues are excellent
properties to leave alone. No tip on
the market listing Ii exclusive, how
ever quietly whispered. II you have
II be cd that hundreds Of others
also have the same information.
But this lesson In finance 10 not
without It's recompense. Men who lost
heavily will probably profit in the end.
They have demonstrated they can ac-
cumulate, and they Will begin again,
and next time they will not sndeavor
to build their financial structure on
the foundation that has proven more
unstable than sand-speculation or,
AZ II is better known here In the West
Just common gambling.
There will be those who will recall
the governments warning that In the
heat OF speculation was permitted to
Lass unheedcd. They will also recall
THE fact that the United States gov
eminent. through the Savings Division
OF the Treasury Department. was dis
seminating information that II It had
been acted upon would have ayerted
tho disaster. and the men would be in
splendid financial shape had they done
as the government advised.
The government has been urging
men and women with surplus to in
vest their savings IN Treasury Cav
ings Certificates There Ii no sp6cu-
iation here. Yet there il q splendid
80 &~..t ~ 49, ~. a., - -. -