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.The stories the newspapers printed of how I had paid back in full themillions I owed did the trick.My plungings and my winnings were so magnified by thenewspapers that I was talked about in Wall Street.The day was past when an operatorswinging a line of two hundred thousand shares of stock could dominate the market.But, as you know, the public always desires to find successors to the old leaders.It wasMr.Keene's reputation as a skilful stock operator, a winner of millions on his own hook,- 225 - Reminiscences of a Stock Operatorthat made promoters and banking houses apply to him for selling large blocks ofsecurities.In short, his services as manipulator were in demand because of the stories theStreet had heard about his previous successes as a trader.But Keene was gone passed on to that heaven where he once said he wouldn't stay amoment unless he found Sysonby there waiting for him.Two or three other men whomade stock-market history for a few months had relapsed into the obscurity ofprolonged inactivity.I refer particularly to certain of those plunging Westerners whocame to Wall Street in 1901 and after making many millions out of their Steel holdingsremained in Wall Street.They were in reality superpromoters rather than operators ofthe Keene type.But they were extremely able, extremely rich and extremely successfulin the securities of the companies which they and their friends controlled.They were notreally great manipulators, like Keene or Governor Flower.Still, the Street found in themplenty to gossip about and they certainly had a following among the professionals andthe sportier commission houses.After they ceased to trade actively the Street founditself without manipulators; at least, it couldn't read about them in the newspapers.You remember the big bull market that began when the Stock Exchange resumedbusiness in 1915.As the market broadened and the Allies' purchases in this countrymounted into billions we ran into a boom.As far as manipulation went, it wasn'tnecessary for anybody to lift a finger to create an unlimited market for a war bride.Scores of men made millions by capitalizing contracts or even promises of contracts.They became successful promoters, either with the aid of friendly bankers or by bringingout their companies on the Curb market.The public bought anything that was adequatelytouted.When the bloom wore off the boom, some of these promoters found themselves in needof help from experts in stock salesmanship.When the public is hung up with all kinds ofsecurities, some of them purchased at higher prices, it is not an easy task to dispose ofuntried stocks.After a boom the public is positive that nothing is going up.It isn't thatbuyers become more discriminating, but that the blind buying is over.It is the state ofmind that has changed.Prices don't even have to go down to make people pessimistic.Itis enough if the market gets dull and stays dull for a time.In every boom companies are formed primarily if not exclusively to take advantage ofthe public's appetite for all kinds of stocks.Also there are belated promotions.The- 226 - Reminiscences of a Stock Operatorreason why promoters make that mistake is that being human they are unwilling to seethe end of the boom.Moreover, it is good business to take chances when the possibleprofit is big enough.The top is never in sight when the vision is vitiated by hope.Theaverage man sees a stock that nobody wanted at twelve dollars or fourteen dollars ashare suddenly advance to thirty which surely is the top until it rises to fifty.That isabsolutely the end of the rise.Then it goes to sixty; to seventy; to seventy-five.It thenbecomes a certainty that this stock, which a few weeks ago was selling for less thanfifteen, can't go any higher.But it goes to eighty; and to eighty-five.Whereupon theaverage man, who never thinks of values but of prices, and is not governed in his actionsby conditions but by fears, takes the easiest way he stops thinking that there must be alimit to the advances.That is why those outsiders who are wise enough not to buy at thetop make up for it by not taking profits.The big money in booms is always made first bythe public on paper.And it remains on paper.- 227 - Reminiscences of a Stock OperatorChapter XXIIOne day Jim Barnes, who not only was one of my principal brokers but an intimatefriend as well, called on me.He said he wanted me to do him a great favour
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