The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1920-02-12
SPECUlATNECRAzE
BR|NGSSTOCKCRASH
Reckless Investment Followed by
Heavy Losses When Market
Goes to Pieces.
GOVERNMENT SECURITIES
REMAIN SAFE AND SOUND
Uncle Sans Bonds "Good az Gold"
While General Slump Wipes
Out Fortunes.

New k.-semi-panicky declines
in the stock market and subsequent
relapses from the partial recovery.
with heavy forced liquidation OF light
ly 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 in some departments Of the
market, notably oil. motor and other
industrial" shares. Then in 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
it beyond reason. Eastern market
reports for months have carried men.
ton Of buying by "the public" High
W ;:es, war profits, the prosperity OF
industry and agriculture have given
Investments Prove Disappointing.
Financing of new and old corpora
tions by stock, bond and note issues
called for hundreds Of millions of dol
lars. Issues Of preferred stock alone
since January have totaled more
than $600,OOO,O0O and common stock
a billion more. Foreign loans with
more in prospect to finance Eur0pe's
buying added to the burden. The
immense buying powe 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 1917, the next week to 20% and last
week to 800, the highest point since
the panic of 1907. Renewals touched
14%, the highest in years, and time
money hit 80. The advance was q
warning from the banks to 20 slow.
pools" and "tirsters" began to draw
In their horns.
The decline was orderly until In
sufficiently margined accounts wore
liquidated. Then came q smash.
General Motors new common stock,
which had scared to 4061s dropped
to 280, Mexican Petroleum from
256k to 1856, Texas company from
33S to 2S6, Studebaker from 143h to
10S%, American Tobacco from 307A
to 24O, Crucible Steel from 235
TO 200 and so on down the list.
Even U. s. Steel, the porverbial mar
ket. barometer, declined from 1921
to 1O3
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
So 20 70 n deens aosn
swings followed the recoveries and the
marked atmosphere 10 not yet considered
;. In a nutshell a speculative craze set
Reserve Board against transportation
No Better ei Illustration Of the permanent
can be found than in the present unset
tied market. War Savings Stamps and
Treasury Savings. Certificates and
Liberty Bonds continue their. interest
bearing career unaffected by the storms
Of financial stress that overtake less
favorable securities
INSURE A CROP IN DRY YEAR
Many farmers even in the dry
years raise a good crop. An examina-
ton of their methods shows that they
use moisture conserving methods as
raising corn and potatoes or summer
following. Two things are accomplish