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Reminiscences of a Stock Operator
that made promoters and banking houses apply to him for selling large blocks of
securities. In short, his services as manipulator were in demand because of the stories the
Street 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 a
moment unless he found Sysonby there waiting for him. Two or three other men who
made stock-market history for a few months had relapsed into the obscurity of
prolonged inactivity. I refer particularly to certain of those plunging Westerners who
came to Wall Street in 1901 and after making many millions out of their Steel holdings
remained in Wall Street. They were in reality superpromoters rather than operators of
the Keene type. But they were extremely able, extremely rich and extremely successful
in the securities of the companies which they and their friends controlled. They were not
really great manipulators, like Keene or Governor Flower. Still, the Street found in them
plenty to gossip about and they certainly had a following among the professionals and
the sportier commission houses. After they ceased to trade actively the Street found
itself 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 resumed
business in 1915. As the market broadened and the Allies' purchases in this country
mounted into billions we ran into a boom. As far as manipulation went, it wasn't
necessary 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 bringing
out their companies on the Curb market. The public bought anything that was adequately
touted.
When the bloom wore off the boom, some of these promoters found themselves in need
of help from experts in stock salesmanship. When the public is hung up with all kinds of
securities, some of them purchased at higher prices, it is not an easy task to dispose of
untried stocks. After a boom the public is positive that nothing is going up. It isn't that
buyers become more discriminating, but that the blind buying is over. It is the state of
mind that has changed. Prices don't even have to go down to make people pessimistic. It
is 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 of
the public's appetite for all kinds of stocks. Also there are belated promotions. The
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