El Paso herald. (El Paso, Tex.) 1901-1931, 1920-11-12

ONE DIFFERENCE between Spectators INVESTORS Is
y tat spectators think Of prices while investors think
Of values The Spectator is not much interested in the
values behind commodity OF property which he pro-
poss to trades his chief interest in how much he can
get out Of the public out Of purchaser purchasers
whom he induce through his cevsTness TO take
his stuff off his hands at profit to himself What luck
the purchaser has after that does not the specu-
lators his interest is IN quick turn at profit OF, if it Is
long shot his interest consists IN getting other people TO
play his game while he sits back and waits.
The successful men, the men who have built up the
great industries and businesses and services in this country
TIE who have built up the great permanent fortunes
have generally been investors rather than specultors
These men have generally devoted themselves II large de-
gree development work, to building up their properties
and performing some service to society while holding
position by which they expect to profit from the general
improvement in values.
The investor may properly dea. in stocks OF II vheat
1t al depends what amount Of study he gives to his sub
ec that is whether he studies the properties underlying
the stocks and the basic principles OF wheat MARKETING OF
merely studies the weaknesses OF the public and plays upon
them Motive and method largely determine whether
is 10 be classsd a Spectator investor
Students Of what Is commonly called the high cost Of
living have and to the conclusion that this
misnomer; the real is that there Is first
exaggerated demand second, arbitrary price fixed with
ont reference to cost fair profit but only with reference
to The guby Of the pubic; and third, that the public
not careful it should be to study and consider
values, real values as opposed to prices and fictitious
values
Prices DO not reflect values This is universal condi-
ton true IN measure IN al countries, perhaps somewhat
Prices tend to approximate values, that is to
say, something Ike the old disposition to FIX prices
basis Of cost and fair profit the basis Of earning
power, becomes discernibe The movement toward
ay is slow, and while this return to sanity Is reflected
commodities and lines Of business, in others no
psroeptible change has taken place yet.
How fast the return to uormaty and sanity shall BE-
depends the state Of the public mind than any
other factor So long exaggerated demand continues so
long arbitrary prices paid By the public without
sfacual protest long the public does not devote
ief TO study Of real values long the public con-
tnuss TO absorb anything offered at any price however
uftedte processes Of economic law VII continue to be
hindered and the readjustneut deferred
More real values: this should be kept before
the public constantly ideaL Solid worthy businesses
have nothing to fear from the rgd application OF value
Weighing by the consuming public Only those taking an
unfair and disproporonate return have to fear
return to sanity.
When people determine to buy only what is intrn-
sicay good and worth the prce charged there VII be
rough waters for the too greedy Of business When
people begin to limit their spending for things Of ephemeral
nature and devote Of their earnings to acquiring
things they can hold to and and continue to enjoy