Savannah morning news. [volume] (Savannah) 1868-1887, 1882-02-18
The Mania for speculation.

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fresh in the minds of every one, and
considerable moralizstion upon the evils
resulting from the mad and eager pur-
suit of sudden wealth has been INDUCED
in, with the recent failure Of the Union
Generate, as q text. Late events IN this
country. however, show that the mania
for speculation is as prevalent in the
United States as in France, and that
speculation in the leading staples OF
trade has reached alarming dimensions.
A contemporary, discussing the subject,
calls attention to the serious fact that in
such articles as wheat, corn, provisions
and cotton, and indeed many Of the
most important articles Of import, bust
ness Is principally anticlpatory, and Is
confined almost wholly to futures" 1t
is stated that it is now customary for a
very large portion of the entire supply
of merchandise to be sold weeks and
months ahead of delivery or even Of pro
duction, buyers and sellers hoping for a
profit out of fluctuations in price be-
tween the making a contract and the
time Of delivery.
Transactions in futures" are, under
certain circumstances, legitimate and
proper. It is, for instance, perfectly
right, and, indeed, the part of prudent
foresight, for manufacturers and mer-
chants to make provision for future sup
plies Of such articles as they require
when they see indications ahead Of
probable or even possible difficulty in
readily obtaining such supplies when
needed. This is a transaction based on
legitimate consideration. But as sales Of
futures" are at present conducted, in
majority Of cases they are fraught with
nothing but evil. It has been well said that
now bulls" and bears are no longer
pitted against each other on the mere
chances OF probable change in the condi-
tons affecting the market; their Deepen
dence is solely on their strength Of CAPT
tai and their skill Of man9uvering to
control the market and compel each
other to settle to their individual advan-
tage. The contamination Of the game
IS in ''cornering' the one or the other, so
IS TO compel an unnatural rise or fall in
prices when a large amount Of contracts
mas to be settled. The consequence is
that prices are constantly exposed to an
artificial unsetiling, which keeps the
market in suspense and surrounds legiti-
mate business with utter uncertainty.
Transactions of this character cannot
be too severely condemned. They are
immoral IN tendency, and too frequently
dishonest. Not only do they offer
temptation to an impecunioUs or unscru-
pulous broker to take advantage Of op-
portunities presented to squeeze out an
unfortunate client who has put up his all
as margin" in his hands, but they FIRE
quently hold market stagnant for weeks
or months, stop legitimate business, in
terrupt manufacture, burthsn the loan
market with carrying huge idle stocks of
merchandise, and thus derange the ma
chinery Of finance as much as that Of com
merce.
Regarding the evils resulting from this
speculative mania a well known metro
politan journal truly says that one Of its
worst effects IS that it so deranges the or
binary business of merchanting as to
leave the legitimate merchant no alter
native between retiring from business
and entering the dangerous arena OF
speculation. It thus comes to pass that
men who have spent generation IN
honorable business and have smsssed
a fortune by care and good judgment are
almost inevitably drawn into the vortex
Of wild speculation, and in a day for
tune disappears that it has taken a life
time to gather. zone Of the great diff
culties Of banking at the present
day" continues that paper, ''is that
bankers DO not know who among
those TO whom they are making ad-
vances are being drawn into specu-
lative risks, and who are adheTing TO
iona fde methods Of business. Every
now and then they are alarmed by the
suspension Of old and supposedly con
servative houses, deemed TO be rich, but
who prove TO have lost their capital in
speculation; and the answer is IN all
such cases that they were compelled to
speculate or do no business at all. The
one thing that mars commercial credit
at the present moment IS the unceT-
talnty as TO who is ard who is not
engaged in speculatons in the comm0di-
ties il which they deal. The facts as
they stand TO day are that, in some Of
the leading branches Of meTchanting,
legitimate business has been almost
wholly superseded by these illegitimate
transactions, and that commercial sue
cess is consequently almost entirely a
matter of chance. \ more rotten condi-
ton Of sffairs can hardly be conceived.
1t cannot, however, last forever, for its
vices and its mischievous results must
ultimately effect its cure. But, in the
meantime, it affords a reason for dis
elimination among those who are lending
money for commercial use.
Notwithstanding sll this, it is very
doubtful if the evil spirit of thoughtless
and reckless speculation can ever be exor-
cised. The prize offered is so gliltering. the
chance for securing a speedy competence,
and becoming independent for life, seems
so favorable, that the temptltion is too
hard to be successfully resisted altogeth-
er. The ruinatiOn and trouble which so
often follows the yielding TO such risky
and hazardous means Of acquiring riches.
however, should determine the wise and
prudent to abstain from dangerous
ventures. II men with ample means,
who can stand heavy declines and falls
in prices, are frequently ruined through
a fatal error Of judgment. it is evident
that the chances against the wesk opera
tor are equally as great as if he risked
his means upon the turn of a card.