New-York tribune., 1922-02-19

a. ... ...... an. '(5&(&;,,
sold. But 4 bucket -QMMMB
hop has the appearance tlQNbAY
without the reality. A MI
man who trades through a \W
buket shop is ineffective
because his agent fails to Go
what he is intended to do. The
customer is expressing his at
tsude regarding prospective
danges in the market worth of securities, cN-
vctng to profit out of rises and fails in quo
aiions, but if he trades through bucket shop
instead Of in ii respectable brokerage office he
watches the fluctuatng prices in vain. He is as
futile as bndfolded man touching the keys
0t typewriter and failing to make an I'M
preston on paper because by some tampering
stb The machinery the type bars have been
dss~anected from the keys.
1ucke mop with the great market places
mere prices of securities and commodities
n quoted have been cut off by subtle tinker
,swith the machinery of brokerage. He gets
Il the thrills and excitement of one actually
fssatinr in the stock and commodity mar
las, but he interests himself in vain in the
trend Of quotations, for the bucketccr has
Sen to it that, in all probability, the custom
g will loso no matter how unconventionally
and perverseiy prices may move.
bucket shop-and in its present loose
usage the term covers the whole range of ir-
ngularities evolved by the consciously uncthi-
cal brokers who arc bent on preventing their
msiomers FROM wnnlng--is a center of dclu-
son
The purchaser Of securities assumes wrongly
that the keeper of tho hucketshop is his agent,
ready to buy ochs, bonds or commodities at
regular exchanges for commission. Who're
me customer buys out Of proportion to his
~~'o lit hdS 10 borrow 10 nOlO DiS commute
HentS By an arrangement with the banks,
'ae reputable broker gets the needed funds by
peoglng tho securities as collateral and the
customer must pay interest on the borrowed
""ney as lone rs tho loan is carried. The
Croker pays ,hc interest charges to the bank,
anu IN turn collects interest from his custom
'S' usually adding small profit to rem
use him for his trouble The ordinary COM
"SSloh broke, who acts as an agent in the
'4snase or sale of securities for outsiders,
'om Wall Street conveniently calls the pub
- makes money out Of the transactions only
~o ways; through the charge of a COM
~SVh and through a profit made on interest.
y '"c margin of profit is small and success
's'nos on large volume of business. The
s'"nla'e broker neither profits nor loses
''" 'ne correctness of judgment of his Gus
''asr He prefers to have customers Of dis
'"'"eh' for all others are quickly wiped
'no eiiaced when they enter the necessa-
NAaiuouS and battling task OF seeking
'''' Out OF their own judgment of the future
wi oi securities or commodities. Expert
SHOWS that the great leaps Of speculation
81 '"s 1or those especially qualified with
'''edge and financial resources. The ordi-
man. whose notions about the financial
ANery are vague and whose knowledge Of
-''eeS that determine market values is
'ooher or later is likely to lose the
""'ch he has offered as sacrifice at the
~"ples of speculation to the god Of
"e''hg, ancient and modern, is based on
~ so'ery that the average mans judgment
'are trend Of market prices is likely
"song, and the bucketecr, unlike the