The Washington herald., 1919-04-03
STOCK TRADING
HABIT GROWING
Holland Warns Against
Hasty Deals by Public.
Advises Caution.

steel common stock. the aggregate
OF which was 10000 shares. OF course
there were many surmises as to the
identity of the man who had done
this unusual thing. unusual at least
for these times. But the securities
market in New York is not only free
and liquid. but It is impersonaL II
a transaction OF this kind had been
carried on in London then, as set
Elements are made only fortntghtly,
It would have been inevitable that
the name Of the man who dared to
stand behind an order OF 10000 shares
OF stock would have become known.
Here transactions made ono day are
closed Immediately and settlements
are 50 perfected that it is almost
Impossible to discover tho identity OF
the person. II any attempt Is, made
at ConCcalment.
. Gradually. however. rumor Ccntered
upon one man. perhaps because he
was known to have made $4,000 not
in the now traditional pool in the
United States Steel common stock
in 1soa. He is a man Of many and
varied undertakings. In recent years
everything. With n single exception,
which no has touched has turned to
gold. lie is n man who bears losses
with perfect eGuanimity. Upon one
occasion he learned that Re F"d met
with a loss OF nearly SkO.COO. He said
to himself as he afterwards reported.
well. it's all in the game" and he
went to bed and slept soundly. He
y a banker. he is the sole owner OF
several large corporations. And he
has even ventured into publishing.
Since this transaction the ques-
ton has been asked many times:
Is this man to be the new leader in
the securities market. tine one in
dividusl for whom 50 many have
been looking since there began to
be reason for the hope that the
market had reached the ebb and
was now beginning to float upon
the food tide?
No doubt the temptation -
strong to enter the speculative mar
ket and it may be that the public
will not be restra aimed. Neverthe-
less there are some elements OF
danger. Unless a man is well in
formed. on the inside, so to speak.
be is taking u great risk when he
b gins TO speculate. or course there
are men who speculate exactly as
y gambler docs who risks his
money ON the turn Of the card.
But tho great spectators are those
who have. as they believe. reason
10 know what is on the way on
the INSIDE.
For example. an operator Of long
and successful experience who has
now retired spoke Of the action
81 the authorities in the copper
INDUSTRY in reducing some of the
dividends. There were also reports
VI the accumulation or many mill
lion pounds Of copper which is
awaiting market. The first i'm
EressiUu naturally enough was that
g. copper industry IS NOT sfourfsifl-
ing. so that IL a man was disposed
f. speculate in copper stocks he
would he likely to sell and not TO
buy. ...
But the fact is that the reddction in
the dividend of some OF the copper
companies WAS not due to any inn
paired financial condition. but solely
for the purpose OF meeting the labor
situation in such a way that there
will be satisfactory readjustment OF
the relation between those who work
in the copper industries and thUse who
direct those industries. 1t may be
that after this j. accomplished it will
be possible TO resume dividends upon
the old basis and when that comes.
II il does. then the market price or
these stocks will rise.
Although occasionally there may he
found a man Of influence in the world
Of finance and banking who looks into
lac present situation and that of the
future az though be were peering
through a fog. nevertheless the pre-
vailinE sentiment among the leaders
is one Of encOuTa cement. One of the
evidences Of this feeling is to be dis
covered in the gathering in this city
OF bankers who represent the great
financial CeRters of the United States
and who contemplate extending all
reasona BILE financial aid to people
across the sea who are ready and even
anxious to buy commodities in un-
pTeccdcutcd amounts in the United
states.
The bankers believe that all that
H. nCCCss any to secure such a foreign
trade rs no country ever before Sc
cured. is proper financial assistance to
those who would be glad to buy in the
United States if they could borrow the
O. pitaI with which to do it, II they
find that CAPITAL then they will buy.
That would result i'm the speeding up
OF all our industries TO the highest
possible point
Another reason for the optimism is
discovered in disclosures, such as Fred
!. Kent. vice president of the Bankers
Trust Company. has recently made.
Mr.. Kent is abundantly qualified to
speak with authority. He aided the
Government in the war days in GER
tain important financial matters, do
ing that willingly and without any
recompensc. Before the war came he
had achieved remarkable success in
establishing in Europe and in other
parts Of the world branches which
would make it as easy for Americans
in Europe to carry on banking or
financial business there as would be
the case were the transactions con-
centrated in one of the great trust
companies Of New York He is one
OF the few really great masters of
foreign exchange. itself one Of the
most difficult and technical Of all the
factors entering into financial and
business life.
Mr. Kent says that in addition to
the loans or credits which the gov
ernment at Washington has advanced
to our allies, loans which in these last
days of March approximate So. 900 OO0. =
90, there are s., l6j. 900 600 outstanding
loans to people in other lands which
are in the hands of the bankers and
public OF the United States.
But the public i'm other countries. IL
they are to be able to buy American
commodities in amounts needed, must
greatly increase the amount OF private
loans. now in excess of two billions
which they have made with the bank
srs and the public of the United
States. The reason is easy to see