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1272

THIS BOOK

Es Respectfully Enscribed

TO THOSE

ABLE STATESMEN, POLITICIANS, FINANCIERS,

AND MEN OF AFFAIRS,

TO WHOSE CONSTANT GUIDANCE IS DUE THE ADVANCEMENT OF

OUR COUNTRY ALONG EVER-WIDENING PATHS OF

PEACE AND PROSPERITY

THE WALL STREET POINT OF VIEW.

PART I.

WALL STREET ITSELF.

CHAPTER I.

WALL STREET AS A GAUGE OF BUSINESS PROSPERITY. What it is: its area, population, and institutions. The difference between natural and artificial conditions, the latter being the false standard of judgment by outsiders. People decry Wall Street speculation without a correct knowledge of its character. -The Street is not a gambler's paradise, but a place where hard, honest work tells.—It is a public benefactor and once, at least, saved the country. The center to which the surplus money of the world flows for investment.

THE

'HE district known as Wall Street embraces more wealth in proportion to area than any other space of similar dimensions in the world. Considering even the mere thoroughfare known by that name and extending from Trinity Church to the East River, the same assertion holds good. This latter limit is the one mentally placed by the great majority of our people upon the financial heart of the country, that throbs with the daily ebb and flow of millions, infusing life into all our vast enterprises.

The Wall Street region includes in its wealthy grasp the large majority of New York banks and other financial institutions, including savings banks. It is the great center of the insurance companies, life, fire, and marine; of the great Trust Companies which command thousands of millions of capital, and are the custodians of many of the largest and most wealthy estates in the country. Finally, the region known as Wall Street has virtually a contingent population of three millions, which is just

about the census record of the thirteen original states when they cut loose from Great Britain and asserted their independence. In addition to the financial institutions as above stated, Wall Street has banks with large capital connected with all foreign nations. China, no less that the comparatively contiguous London, is represented by banking institutions here.

It has been the habit of too many people — well-meaning people, too—to decry Wall Street as hurtful to the morals of the country and injurious to our best business interests, - all of which is mistaken. Wall Street has been very aptly described as the "business pulse of the nation," and that is what it is, in the truest sense of the term. As the mercury in the thermometer denotes the degrees of heat and cold, so do the fluctuations in the Wall Street markets show the rise and fall of the business activity of the country. Let there be any activity in mercantile or manufacturing circles, and it is immediately reflected in the Stock Exchange and the other exchanges where values are dependent upon business activity and financial confidence. On the other hand, causes that influence the outside world unfavorably have a depressing effect in Wall Street, and the prices of securities and products take a lower turn. These are the results when natural conditions are allowed to prevail. Of course there are times when speculative syndicates get control, and by their manipulations create artificial conditions and artificial results. Then it is that panics are liable to occur; in fact, I doubt if there has ever been a panic in Wall Street that was not due to the work of such manipulations. Wall Street is a place where the laws of cause and effect are conspicuously potent, and it is as impossible for any combination of men to resist these laws without making trouble as it is for a human being to defy the forces of nature. An irreverent operator in grain speculations, commenting once on the failure of a pool to put up the price of wheat and maintain it in the face of a big crop, said, "It is of no use trying to buck against God Almighty; he can upset the bulls every time."

To the student of affairs there is more suggestive truth expressed in these few terse words of a disappointed speculator

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