Now the final stage is that the purchasers on margin, scenting: trouble, which means dearer money, were driven into a panic, and farseeing the fall in the price of bonds which would wipe out, their margin and even result in further loss, started a rush of selling orders which broke the market, while would-be buyers held off for lower prices. This has resulted in heavy loss to the speculators who are deprived of their margins and more if they. have it. It also involves loss to banks who hold insufficient margins for their sales to the speculators, or who were over-bought themselves, at higher levels. The effort of speculators and banks to obtain commodation, and the finance liquidation of their accounts brings about the tight money, the fear of which was the cause of the pa This forms the vicious through which several of the banks have fallen, It is to be hoped that this wi bbe an expedient means to eliminate the worst offenders among the speculators and the "mushroom" banks, and will clear the atmosphere' when the crisis is over. After all, the bonds are well cured and are an excellent! the credit of the government good, bonds go up and vice ver Zn China where most things are done in the opposite way according to the Western point of view the process is reversed. When the tered it of the Government is good it can borrow money and the floating of new loans satisfies the Snvestment market and keeps the prices down. When the Government is discredited and financially bankrupt it is unable to borrow on large scale. The investor buys up the well secured loans and the investment provided the pric not forced excessively high. The' bona fide investor who desires a good and safe investment at a reasonable price will be glad to see a healthy market more free from pulation and less under the influence of violent fluctuations. The money market will be well rid of the parasite "mushroom" organization which does nothing for the development of healthy trade and panders for its own rapid enrichment, a feature far too noricable since the war.
Text read from the printed page and cleaned; old type leaves the occasional error.