Finance—Public & Private
Newspaper and Other " Tips"
NOTHING, perhaps, is more indicative of the spread of' speculative operations on the Stock Exchange on the 'part of the public than the manner in which so many news-- papers in the country now devote space each daft() what can only be described as a series of tips. I doubt, however, whether the journals in question are greatly to be blamed for this innovation inasmuch as in the struggle now pro- ceeding for, circulation, the pressure on the newspaper -pioprietors to supply what the. public most requires is -becoming more severe every day. _ .
A CREDULOUS PUBLIC.
Moreover, as every student of human nature is aware, the speculative public is ever seeking for tips of this -description; whether from the newspaper or from the individual. Whenever a speculative mania prevails, members of the get-rich-quick fraternity are for ever pestering those who they think' have the slightest InOw- ledge of Stock Exchange affairs to mention the names .of shares most likely to advance. Curiously enough, too, -those who put the question seem to have the blindest faith in the replies which may be given, and not infre- quently rush off to the nearest broker to buy just what- ever may have been suggested, reserving all questions of inquiries until a later date, possibly when a retrograde movement in the shares has awakened some anxiety as to the wisdom of the purchase.
A DISTINCTION.
Moreover, it must also be confessed that the demand for the services of the tipster is stimulated not only by cupidity on the part of those who wish to make quick profits an the Stock Exchange but also by sheer indolence which makes it distasteful to the intending investor or speculator carefully to investigate the position of' an undertaking for himself. And it is just here, of course, that a great distinction must be drawn between those journals giving blind " tips'_' and those which in their columns aid the investor by a careful analysis of the position of a particular undertaking, showing the inward.. ness of the position as far as it is possible and the strength or weakness of that position from the point of view of the investor. Such hints are invaluable. Moreover, they can be checked by the investor himself if he looks into the position, while such hints are usually entirely free front any suggestion as to whether the shares themselves are likely to rise or fall.
GENERAL TENDENCIES.
There is, moreover, another kind of tip or hint which also calls for praise and not for censure. It is the hint concerned not merely as regards one particular security but as regards general market tendencies. Thus, for example, certain responsible journals during the recent period covering the excited rise in many Industrial shares, have endeavoured to explain very clearly to the public that the wild gamble in Wall Street in New York constituted a grave danger spot, and that unless that boom was checked sooner or later—and probably sooner rather than later—the result would be such a rise in the value of money as to have a depressing effect upon all markets. It was pointed out in . these journals that unless the steady stream of gold exports from the country was checked, a rise in the Bank Rate was inevitable ; and when, therefore, a fortnight ago our Bank Rate was raised from 41,- to 5 per cent. and everything in markets, from Consols to Mining shares, tumbled, the public could not say that they had not been warned with regard ' to the dangers in the satiation. Unfortunately, how- ever, it is that kind of hint and reasoning which the public is often disposed to_ utterly disregard while re- posing the blindest faith in the tip to purchase this or that share for a quick rise.
BUCKET SHOP ACTIVITY. —
Nor, of course, is the habit of tipping confined to news- paPeri. - It is in times Such as the present, when the public Is seeking to' acquire shares not for income but for a:rise in market values, that bucket shops are par- .tienlarly active with their circulars to the public, and it is at times such as these that Smith and Jones become suddenly aware of the interest which is being taken in them by such institutions even to the point of their receiving telegrams urging them to buy a particular share - quickly as a rise is , certain. Needless to say, all who receive such communications should either disregard them or get into touch with a responsible broker before taking any action. A moment's thought will probably cause the recipients of such messages to feel convinced that the solicitations to purchase a particular share must -mean that there are holders ready to part. OnItzjust recently Onerof the leading banks was so impressed with the manner in which a`Partimilar share was being pushed in this way that it was deemed advisable to send out a circular to all the branches telling the managers to advise all customers who received such messages to take responsible advice" before acquiring the-shares.
ARTHUR W. KIDDY.
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