Perth Amboy evening news., 1922-09-08
WISE AND
OTHERWISE TOLD OF
Daily Letter by Frederic j. Haskin

come to Washington have it thrust
under their very noses, whlle thoSe
absent must e for 1t.
The wise one at Washington study
these data. They can obtain reports
OF utmost value from the depart
ment of Commerce, the treasury
Department, Federal Reserve Board
Department of Agriculture, inter
state Commerce Commission red
eral Trade Commission and many
other sources. This information Is
open to anyone.
4 good case in point may be cited:
A year ago reports received and
made public by the Department or
Agriculture showed what the indl-
| cations would be for crops OF cot
ton, not only in this country u IN
tho whole world, for the coming
year. Reports OF the Census Bu-
reau showed the rate of American
consumption and reports to the Blu
reau of Foreign and Domestic Com
merce showed the rate of consump-
ton in the textile mills of Belgium,
England, France, Germany, and the
| Orient, as we'll as in all other coun-
tries. But the man who took all
these reports and studied them
learned that 1t was inevitable as
the succession of night and day hat
the price OF cotton would rise.
Everyone knows that the price OF
cotton-last fall a dirt cheap bar
gain-has risen notably.
The students among the Washing
tor officials who were able to take
advantage Of this information
bought cotton last year.. They now
have made substantial profits.
Tina Samn ia frna of the toe
market. The first group governed
by the tipsters. buy on margin be-
cause of some stray fragment of in
formation passed along. A small
fiuctuation in prices. such as no man
can foresee but such as a small group
in Wall street a manipulate wipes
ont such spectators. The studious
Washingtonian buys stocks not on
margin but outright. The momen-
tary fluctuation cannot disturb him.
His purchases are based on a knowl-
edge of the supply and demand OF
various commodities in the country
and what they are likely to be for
a lopg time in advance. He can
not he fooled. He merely hangs
on until the price of his stock rises
to a point where he believes the in
evitable reaction will set in; then he
sells and takes his profit.
What a Big Market May Mean
Recently there was a million
share day on the New York Stock
Exchange. This generally was her
aided by brokers ~ al indication
of growing prosperity and they g
%couraged the public to buy the
stocks which were being offered.
Immediately afterwards a CLOSE
student of national and information
al affairs made the following an
alysis.
, IF a million shares were traded
in, they had to come from some
where. They were stocks which ar,
held by the big investors. the mel
who make a close study of funda
mental economic conditions. Whel
N big men dump their stocks on tn
market they surely cannot be ex
pecting permanent increases i
- prices. They must be expectinI
lower prices or they would hold or
With the country facing a winee
of curtailed industrial output du
to strikes, the big men appear t
think that these particular stock
ara not going any higher; therefor
they are unloading before the reac
ton sets in. The little trader see
a big day on the Exchange, assume
tAial obotho L oNNANO pSSoNoSA "a
+, list is due for a rise. and buys on
margin. Small. snap-judgment me
are buying what big. investigator
men are selling. Somebody Is go
ing to lose"
The general feeling is that tn
fundamental conditions in tn
United States are getting bette
slowly but steadily and the abov
analysis does not apply to every
thing. A certain type of stock
was under discussion, and what wa
said reveals the n in whicl
the stock market is played from tn
two opposing angles.
1t Is agreed by those who knoy
most about the subject that ther
is no royal road TO knowledge OF tn
business situation and to the gate
way of opportunity in the teemin
world of American trade. 1t
agreed also, however. that care an
study devoted to the signs Of tn
times as revealed by the report
which the government complies an
makes available to everyone will b
repaid with an understanding
conditions procurable in no othe
way.
Last June an executive OF q bi
Industrial c who had bee
studying Washington reports COZ