The Marietta journal. [volume] (Marietta, Ga.) 1866-1909, 1882-02-23
THE MANIA FOR spEcULAr1oN.


A contemporary, discussing the
subject, calls attention TO the serious
fact that, in such articles as wheat,
corn, provisions and cotton, and in
deed many of The most important
articles Of import, business is princi-
pally anticipstOry, and is confined
almost wholly to futures" 1t is
stated that it is now customary for
very large portion of the entire sup
ply of merchandise to be sold weeks
and months ahead of delivery OF even
of production, buyers aud sellers
hoping for profit out of fluctuations
in price between the making con-
tract and the time of delivery
Transactions 10 Cultures" are, un
der certain circumstances, legitimate
and proper, 1t is, for instance, per
fectly right, and, indt ed, the part of
prudent foresight, for manufacturers
and merchants to make provision for
future supplies of such articles as
they require when they see indica
,ions ahead of probable or even
possible difficulty in readily obtain.
ing such supplies when needed. -
This is a transaction based on le-
climate consideration. But as sales
Of cultures" are at present conduc
ted, in majority of cases they are
frought with nothing but evil. 1t
hiss been we'll said that now "bai!s"
and "bears' are no longer pitted
against each other on the mere
chances of probable change in the
conditions affecting the market; their
dependence is solely on their strength
of capital and their skill Of maD9uv-
sring to control the market aud com
pei each other to settle to their indi
vidual advantage. The consumma
ton of the game is in "cornering'
the one or the other, so as to compel
an unnatural rise or fall 10 prices
when a large amount of contracts
has to be settled. The consequence
is that prices are constantly exposed
to an artificial unsettling, which
keeps the market in suspense and
surrounds legitimate business with
utter uncertainty.
Transactions IF this character can
not be too severely cond smned -
They are immoral 10 tendency, and
too frequently dishonest Not only
do they offer temptation to an impe-
cunious or INSCRIPTIONS broker to
take advantage Of opportunities pre-
sented to squeeze out" an unfortu-
nate client who has put up his all as
margin" 10 his hands, but they
frequently. hold market s'sguant
for weeks or months, stop Legitimate
business, interrupt manufacture, bur
then the loan market with carrying
huge idle stocks of merchandise, and
thus derange the machinery of
finance as much as that of commerce.
Regarding the evils resulting from
this speculative mania well known
metropolitan 'urnal truly says that
one of It's worst effects is that it so
deranges the ordinary business of
enchanting as leaves the Legitimate
merchant no alternative between re-
firing from business and entering the
dangerous arena of speculation. 1t
thus comes to pass that men who
have spent a generation 10 honora
BILE business and have amassed a for
tune by care and good judgment are
almost inevitably drawn into the vor
tex of wild speculation, and in day
a fortune disappears that has taken
life time to gather. 'Oue of the
great difficulties of banking at the
present day." continues that paper,
sis that bankers do not know who
among those to whom they are mak~
ing advances are being drawn into
speculative risks, and who are ad
herring to bona tde methods of BUSH
ness. Every now and then they are
alarmed by the suspension of old and
supposed conservative houses, deem
ed 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 uncertainty as
to who is and is not engaged in
speculations 10 the commodities in
which they deal. The facts as they
stand to day are that, in some Of the
leading branches of merchantlng,
legitimate business has been almost
wholly superseded by these illegiti
mate transactions, and that CONNER
cial success is conse quently almost
entirely matter of chance. A more
rotten condition of affairs can hardly
be conceived. 1t cannot, however,
last forever, for ite vices and it's mis-,
chievous results must ultimately Of
feet it's cure. But, in the meantime,
it affords reason for discrimination
among those who are uding money
for commercial use.