The Detroit tribune. (Detroit, Mich.) 1935-1966, 1955-02-12

he might have had because Of his avid greed the
differing lure OF profit.
1874 FLAsHBAck
In Bernard Bsrveh. Park Bench Statesman" written
by Carter Field and published in l94s there good deal
OF not ancient history about the s2ele3o stock market
Lots Of people," says the author made fortunes. on
paper after Bsrveh started turning his fortune into bonds
and cash"
Barveh In his position naturally heard about Iof OF
opportvnss In that period He avoided them himself and
able many Of his friends from taking them. His
preference for cash and tsxexempts- and he kept
acquiring sound and municipal bonds during the early
years OF the depression
Could Bsrveh have warned the country Of the mpsnd
ing eollspse7 Mr. Field thinks mo-" When figures In nsn
eis business and academic life ell preaching doc
trns OF Increasing expansion the voice OF against
This chorus Of optimism would hardly be heard and. u
heard derded Professor Irving j. Fisher widely popular
OF the New Era But while the atmosphere OF optimism may
have been contagious the great majority Of individuals buy
ing stocks did think In general terms They thought OF
the profit be made the transaction In which they
were currently interested.
Having made profit they would sell and look around
for another opportunity" 10 which tip hvneh a.
traeted them.
Bsrveh. son Of a Confederate Army surgeon had
that time viewed much financial history. He did give
private warnings TO friends And Ogden L. Mills destined 10
become secretary OF The treasury Iaer Tuefuy SAID maj
he had lost o Of his friends by talking them out Of pvr
essss in the late 2o which they might have made good
profits and destroyed his reputation for financial nislI
ssnes with many who had bhsly ignored his advice
I'm short" writes Mr.. Field. ''ths country In
mood pay any attention 10 sober advice. The few who
tried 10 give u regarded rsseonsry sekInths
muds"
Ne goes 10 explain that Bsrveh made prsisnss
knowing when the market going TO break Just
how high low stock might question Of only hso
rstes interest 10 him. To buy a. the bottom and 10 sell 81
The top he regarded only amateur speevsors dream
Miracles might happen but not miracles Of this sort
could happen buying selling In large blocks You
cannot sell large block Of stock u there effective
demand for u. The fact that Is thrown the market
dsmpsns The enthusiasm Of buyers.
u land probably is) Bsrvehs conception that The
value Of securities 10 be bought held should be studied
On this basis Of action long before the crazy peaks Of 1919
reached he reached The conclusion that stocks
were over-valusd.
~ the prices 81 which he sold he knew he getting
the utmost which he might receive by hanging That
ell right with him. n his axiom that ~ always good
idea 10 lei the other fellow make little"
This section Of this entertaining and instructive b.
ogrsphy concludes with this observation;
Besides. another Of his msxlns always In case Of
doubt 10 ssl Sell 10 hs sleeping point he said once
meaning until could be kept awake a. night worry
Ing And he has said hundreds Of times that one should
never Be resrsffv because else tells Of how much
better he has done. That fellow said Bsrueh positively
Continued Next Column ToP)