Rensselaer Republican, Volume 14, Number 7, Rensselaer, Jasper County, 3 November 1881 — What A “Corner” is. [ARTICLE]

What A “Corner” is.

A stock corner js thus explained by riie New York Evening Busti The ‘ bear eltnteutMn the market consists of ail those wrho think tbit prices of securities are higher than they ought to than they can permanently remain. In order to take advantage of the unwarranted '•inflation ’of Valued,” As they understand it, they borrow stodks' and sett them at the high prises prevailing, ejecting to be, able to buy them in at Lower prices before it becomes nedeseary to return the borrowed securities. For instance: A borrows from B I.OCO shares of Hannta bal and St. Jesenb,-which is selling at t0,.-.. A pays BRooocash and agrees to return the stock on demand, when, of course, the fhoney. will. be returned to bim. It Is for B’s interest to lend the’stock, because begets tbe interest on the J 60,000 during (he' interval, or* at all events,.more interest than be would otherwise have to .pay for the tlse Of the mcmey. Under ordinary conditions, B, the lender of tbe stock, will rav A, the borrower, something for tbe' use Of the money, but' If the particular stock wanted by the bears is scarce It Will be lent “flat;" that is tbe borrower will receive nothing for the use qf the ptofcey while the lender may even get a commission for the use of the Stock to addition to the Interest on the money which it represents. If the market fluctuates while the loan continues, the borrower and lender settle with each other at the close of each day, Ao. tbat 'tbe amount of money shaft At all times be exactly equivalent

to the value of the stock. When the bears, or any portion of them, nave discerned a weak spdt in the market—that is, a seCtoity selling soi 1 more thaq it Ik worth In their opin* lop—they borrow and sell 1 It HbMiilly. Their selling has the same effect fn putting down the price as though the stock were absolutely their own, and their expectation Is, that other holders, observing a decline In the price will become alarmed and sell also, thus putting down the price still mere and frightening still other hold ers. They intend, of course, to buy enough at the lower scale of quotations to <WHvef back they have borrowed, pocketing tbe difference. It sometimes, though rarely, happens that a discovering what the beafs are about andbeffeviug that they (the beam) art strong enough to stand a heavy toss without L brice mranot be forced up Whjle they «r» tliemselvee buy lug, they lend stock freely to the bears,and ttrts-encourafce

tbe latter to selt. 'AVhen they haveseSred all. dt nearly air, of the particular stock that exists they call in their loans The bears are then compelled io ha. Ik lor tale, life price can be forced un to any figure at which, thO cofbe!* tn Marty 1 choose to put It.* That is What nas'happened to Hannibal and 8L Joseph. The “shorts” must come up and settle on such terms as may be dictated to them. The last resort 1J to

‘leave tbe cornering party Saddled wftb [ the loss they rftoy incut in well as the’ lose 1 money—rare- ocGurreuoe. - : 5 - J

It la found that the effect of tbe electric light In conservatories is sUm-