Henry Howard Harper

“ The stock market does queer things to people; and this sort of psychology is one of its inexplicable effects on the human mind. Imagine for instance, the absurdity of a doctor, or a lawyer, or a business man refusing to collect his accounts in order to escape paying taxes on the profits! And yet any number of men, shrewd in their own business or professions, refused to take stock market profits on account of the tax. The experience of my friend with the fifty-three thousand shares was typical of what happens to those who become afflicted with this peculiar logic. ”

“ The prices of stocks are periodically rising and falling, and one might as well undertake to fight the ocean tide as to contest the course of the stock market when once in full swing in either direction; for the market, unlike the tide, has no prescribed boundaries. There are times—indeed most of the time—when it is much wiser to sit by in the capacity of an interested observer, than to plunge in and become a struggling participant, with the chance of being carried out beyond one’s depth. ”

“ On a sudden a broad white flash of lightning—nothing more than summer heat—made our bibliomaniac lay his head upon his pillow and turn his eyes in an opposite direction. The lightning increased; and one flash more vivid than the rest illuminated the interior of the closet and made manifest an old mahogany book-case stored with books. Up started Ferdinand and put his phosphoric treasures into action. He lit his match and trimmed his candle and rushed into the closet, no longer mindful of the heavens, which now were in a blaze with the summer heat. ”

“ The market rose to such heights that the selling price of securities listed on the New York Stock Exchange—to say nothing of the untold billions listed on other exchanges—reached a figure far in excess of all the money in the world. Though it was reiterated time and time again that customers’ accounts with brokers were amply protected, they were of course margined with other securities, and thus the pyramid grew until it staggered the imagination even of those who built it. ”

“ The market tipsters, the financial editors of newspapers, the brokers’ letters and all stock market literature, with but few exceptions, were crowing loud and boastfully for still higher prices, and after the whole group of stocks had risen in unison for a time, some individual stock was singled out every day or so, pushed into the forefront and skyrocketed to dizzying heights. The brokers and all the customers were delirious with joy and excitement. ”

“ The public was thus taken into these co-operative partnerships and enabled to enjoy all the advantages to be derived from the superior genius and directorship of the giants of wealth and commerce. The small investors and speculators, highly flattered by the opportunity of being admitted into such society, threw their savings into the melting pot with more confidence than as if they were putting them into a savings bank. ”

“ During the past few years it has been my pleasant privilege to spend many hours of each week in concurrent labor with the Council in the preparation of the publications of The Bibliophile Society, in which Council I have had the honor to serve continuously since its organization.
There is no pleasure more delectable, no joy more inspiring than that of devising books which prove a delight to the eye and a satisfaction to the artistic tastes of those who are competent to appreciate the qualities that should characterize a perfectly made book. ”

“ When war was first declared, even before England became involved, the stock market was thrown into such a violent state of panic that it became necessary to close the stock exchange for several months; yet now when the clouds of disaster were at their darkest and hung menacingly over the whole of civilization this country alone was indulging in a riotous exhibition of prosperity such as had never been dreamed of. ”

“ If the bankers are buying, why shouldn’t the public buy? Another popular device was to broadcast reports accredited to Messrs. Coolidge & Mellon, to the effect that after scanning the speculative horizon they could discover no reason why the market should not keep on going up. With such a bulwark of confidence there was but little reason to be afraid. It did not matter whether stocks paid small dividends, or no dividends. It did not matter if money loaned at ten, twelve, or fifteen per cent. The rise in values would take care of all that, with ample to spare. ”

“ In referring to this class of book-buyers, Roswell Field says, "The book-lover, so-called, who lacks any of the thrills that go with the establishment as well as the enjoyment of a library in all of its appointments has deprived himself of many of the most pleasurable literary and semi-literary emotions. That bibliophile never pats his horse or his dog. To him his books are merely tools of trade, accessories to knowledge, to be pawed over, thrown away and replaced by new copies when worn out. ”

“ And thousands daily are influenced by the stock ticker to commit the most fatuous blunders.
As a camera fails to record a true picture if placed in too close juxtaposition to the object, so in studying the ticker-tape one is restricted to a close-up view of conditions, resulting in a distorted gauge of values; for the figures recorded often mislead and confuse the attentive observer; in fact it frequently happens that the price fluctuations result from a wave of hysteria among a coterie of traders, and bear but little analogy to the true value of the stocks. ”

“ Even the gray-haired wizards of Wall Street who had preached caution for two or three years, finally fell into line with the new order of things, and not only did they plunge into the market long after it had passed the point of safety, but they organized more investment trusts running into billions of dollars, and advertised far and wide for the public to buy their stock and join them in amassing fortunes. They would manage everything, and all the people had to do was to furnish the money. ”

“ Indeed, the high esteem in which they have come to be regarded offers a productive field for a few crafty publishers to ply their wily designs in. The audacity of these schemers carries them to such incredible measures that they sometimes buy sheet-stock from reputable publishing houses, change the name of the edition, and deliberately manufacture new titles [84] on which they print the name of some book club or society. These counterfeits are sold to the unsuspecting book-buyer, who often imagines he has landed a prize. ”

“ To launch one’s bark into the rapidly shifting currents of fortune in the stock market and attempt to steer an even course is one of the surest preventives of ennui, and after deliberately weighing and analysing conditions from every conceivable angle our erstwhile leather merchant concluded that cutting a few coupons now and then was too tame an occupation for a man of his acumen and ambition. ”

“ Herrick says that "the truest owner of a library is he who has bought each book for the love he bears to it; who is happy and content to say, 'Here are my jewels, my choicest possessions!'" Seneca, the great Roman philologer, wrote: "If you are fond of books, you will escape the ennui of life; you will neither sigh for evening, disgusted with [64] the occupations of the day, nor will you live dissatisfied with yourself or unprofitable with others." ”

“ There are many persons who, although knowing a great deal about the stock market, do not realize that the reason why they cannot “beat” it, is that they know too little about themselves. There are others who know their limitations well enough to let this monster problem alone. As it is important that one should learn to swim before plunging into deep water, so it is well to know some of the dangers of the stock market before delving into it. ”

“ The many thousands of brokerage offices throughout the country were jammed to the doors by eager onlookers and participants who devoted themselves exclusively to the market from the opening to the close. Office boys, elevator men, manicures, hotel waiters, hairdressers, cab drivers, and even rural farmers initiated themselves into the game and discussed mergers, split-ups, stock dividends, and all such subjects in high finance with more profuseness and profundity than was ever displayed at a bankers’ convention. ”

“ Nothing could be farther from the truth; nothing could disclose a more profound ignorance of existent facts than for one to adhere to any or all of these fallacious beliefs. The stock exchange itself has no more control over the price of securities than it has over the ocean tides. It is merely an auction room where anyone may send in orders to sell stocks and bonds, either at a certain asking price, or “at market” to the highest bidder. On the other hand anyone may put in either a limited or “at market” bid for whatever securities he wants, provided they are on the list admitted for trading ”

“ Most of us are disposed to idealize a besotted bibliomaniac as a harmless being whose companionship and favor are neither to be courted nor particularly avoided,—a sort of shellfish basking on the bank of life's flow in whatever sunshine it may absorb, and paying little heed to the thoughts or actions of others. ”

“ The old split-up, consolidation and stock-dividend chestnuts are being industriously warmed over and the few scattering traders who saved something out of the recent smash are beginning to nibble at the bait. All of which shows that people are quick to forget their stock market troubles and to return for more punishment. ”

“ Their buoyant spirits increase with every [45] new success, until at length they throw discretion to the winds, extend their risks far beyond the margin of safety, and at the infallible turn of the market they find themselves in difficulty, like foolish fishes that get stranded on the beach at high tide. It is a fact, as inexplicable as it is true, that men with a fair amount of gray matter in their heads, who would flout the idea of paying $50 a share for a particular stock, will later borrow money from a broker at from six to eight per cent. ”