Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-22

the same: $2,s55 from bonds and 81, 500
from stocks.
That same list four years later on
July 80. 1929, had a market value of
1921 ,003, while the income had moved
up from $5,155 to $9,988.
Here are his 10 rules for sound in
vestment:
!. Own only bonds and stocks of
leading companies in sound and essen
tial industries.
2. Except for bank and insurance
stocks, own only stocks listed on one
Of the major exchanges.
3. Own only stocks which can boast
an unbroken earning as well as dividend
record OF at least 10 years.
4. Own stocks in at least five differ
ent industries.
B. Own stocks In fairly equal amounts
In at least fifteen different companies.
6. Own a few low-yield stocks as a
means Of building up capital and future
income.
z. AS a rule, buy bonds under par to
obviate the possibility Of spending
capital.
8. Subscribe to one high-grade finan-
cial journal and read it regularly and
| thoroughly.
8. Do not be disturbed by losses on
individual risks, but keep an eye out
for gain or loss on the aggregate
10. Once year sell at least one
stock. choosing the weakest on the list
and having no consideration whatever
for its original cost. Replace it by an
| other good risk.
No one could go very far wrong fol-
lowing these rules.
The New York Stock Market had
| another bad day yesterday. In the
total turnover of 6,091 $40 shares, prices
were crushed in an avalanche Of Sc
curity selling from 50 to $50 a share
lower than Saturday last. The curb
market turnover-3,715,00 600 shares-was
new all-time record Yes, it was q
sad, dark day on Wall Street.
Money ruled at 5 per cent, but public
confidence has been so badly shaken
decided to get out at any figure.
Investment bankers report that They
are not able to move any security intC
the public hands, for the public an.
| pears to be we'll loaded with stocks
which they cannot dispose of now, a
a profit.
Jesse L. Livermore, the well known
bear plunger Of former days, was cred.
tied with driving the stock prices down
He denied 1t yesterday completely anc
emphaticaLy. Neither is he foolish
enough to think that any one individ.
ual or a few individuals working to.
gether could artificially bring about "s
decline in the stock market in a coun.
try so large and so prosperous as thu
United States"
Here are Livermore'S words: "Wha
has happened during the last few
weeks is an inevitable result of a Ion,
| period OF continuous rank manipula
ton of many stock issues to price.
many times their actual worth based OF
real earnings and yield. The men Wht
are responsible for bringing about thes,
fictitious prices are the men who ar,
directly responsible for what is hap
pening in the. stock market today"
Basic conditions In most industries
are sound. Employment is at a higl
peak. But the tendency will be TO
people to draw the hasty conclusion
that what is happening in the marke
reflects the condition of industry.
Should such a psychological reaction
occur throughout the country generally
it would have tendency to slow dow
business and arrest the present bushes
expansion.
while American industries have in
creased their output 46.5 per. cent ant
per capita productivity more than So:
per cent In the last 10 years, thousand
Of workers are still unable to get Jobs,
says william Green, president Of tn
American Federation Of Labor.
But o 0TeAt ehApge has taken ptac