New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-12-24
The EVILS OF SPECULATION.
INQUIRY OF THE SENATE COMMITTEE.


VIEWS OF THE REV. DIR KING AND HENRY cLEws-
DIR. MGLYNN FAyORs TAXING THE LAND.
The Senate Committee who are engaged in
the investigation OF corners" and Of dealings in
futures" havo sought the assistance Of counsel They
did not appear TO such help when the witnesses
were persons like W. II. Vanderbilt Jay
Gould and James r. Keene. Yesterday, how
ever, Chairman Boyd announced tina, the committee
had retained L. F. ChitendeD president of the National
Autobiography League, and he conducted the principal
part Of the days examination. There is no authority
given 10 the committee 10 employ anyone except
senOgrapher. When asked respecting the matter, sena
tor Browning said canddly: We have taken the re-
sponsiblty to retain lawyer just os the other four
legislative investigating committees have done, without
specific authority" Al several recent sessions Of the
committee the nevlyengaged counsel has been present
and paid frequent visits to the Of DR.. Boyd while
witness was under examination.
The committee yesterday sought light the subject
tnat they have hand from two ciergymen and one
sockbroker Perhaps the order OF their examination
accidental, but IL resulted defence Of specula
tive transactions being " sandwched" between two
condemnations them Toward the close of the session.
Dr. Boyd widened the limits OF the investigation and
there easy drifting Of the examination into a
cursOry discussion OF the prolific question otand tenure
reform.
The first witness from whom edfcation sought
was the Rev Dr. James VI. King pastor Of the West
Eighteenth Street Methodist Episcopal Church. DR.
King weighed bis statements with extreme care, and
explained between his answers the Importance Of
judcious expression OF his views such sube as
that which was under consideration He thought
that far speculative transactions fos-
tered the spirit Of venture and gambling.
they were detrimental to public morals Where
. there was no expectation Of making deliveries he
thought that speculative transactions could be charac
tcrZed as pure and simple gambling. If all men en-
gagged these transactions" he said, regarded Chris
tan morality the basis of their relations to
other there would necessity for this committee
| meet" The counsel for the committee paced up and
down the room while he drawing from the witness
through questions delivered with JUNCTION and an evil
dent intention to be impressive confrmaOry opinions
OF tho popular views held OF the ACKNOWLEDGED evils Of
| speculative excesses.
Henry Clews Of Henry Clews & Co., stockholders az
| no IL New-st. then was sworn. BIS calm demeanor,
| closc-cut mustaehe and ceanshaven chm failed TO
daunt the committees counsel in lis resOute endeavor
TO wiring from the witness acknowledgment that the
millennium not prevailing 10 an alarming extent in
Wall street M Clcws read statement written out on
small sheets Of paper the effect that corners the
result OF speculati0ns that at times carried TO
extrcmities Corners were not frequent, as they
were generally Improbable TO the oIignators leaving
rho persons gagged IN them without market for their
accumulated product. Speculation the method
sd0pted FOR the adjustment OF opinions Of probable u
turc values The result or successful speculation FOR 9
ojI in nrices WIS ~ check production until prices had
recovered and the energies Of enterprise for the
time into other channels SUCCESSFUL speculation for
rise stimulated Pr0dgcGn s G b Refs 5 were nc re-
| Us Of supply and demand. Hence speculation
vas great regulator OF values and of production II
en orccs adjusted to the best knowledge OF supply and
demand which were the actual 2ctors mat controlled
values A distinguished merchant, now dead, had by
controlling the SAFE OF epega namuIiS,ures o.
different articles maze more corners tnan
any member Of the speculative community. Mr.
GewI instanced the failure Of Congress TO suppress
b law the dealings gold during tho war, and the fail
me- of Secretary Hugh McCGOch to keep the premium
~ the INABILITY of legislation to control transactions
based on an anticipation Of future values He described
issue OF gold certificates facilitated such operations
isvery easy, sad Mr Ccws 70 deposit ~ 900 IN gold
with the sub Treasury and to walk home with the GER
tidcateg in your pocket
One VI the effects Of locking up gold is TO compe
reSple Who are carrying stocks to throw them Oyerl
6Fbat forces prices down and the holders of stock
oHDo You consider that legitimate speculation A
As to that feature should say not 9. ro.o, o
mon Stock in 1881, Mr. CleTs said that its originator
Mr. P Oh mat the Control OF che sale Of particular
nae of Md gloves, ike Jouyin or Alexandre's, il
spirit the same as a corner in wheat or stockA
VI Do vou tnnk that the business Of buying selling
on margin adds anything 10 the aggregate wealth Of tho
| countryi" queried Mr.. Chttenden.
II don't see now it detracts from it," replied Mr
Cews. ,,.u-.n.,,. o. .,o .o,,,,r,.,. ,-,o,,t -,
"Yes think IL does. II makes market for securities
that otherwise would not exist That enables railroads
Va he hu By the ready sale OF their bonds Speculation
! IL tbe forerlnnef OF enterprise IN business
| Mr. Clews thought that a market where values were
| iufotcd nv ejaculation desirable than time
~ DEPRESSION lie considered that speculation in grain
ond PROVISIONS beneficial In the end to consumers.
~. ras asked in vain for particular instance within
| ma ksowedge where prices OF wheat were unduY in
! at 4 Nv specu alton. Mr.. CMtrcndcn thereupOn de-
crcd mat he wanted facts from the witnesses and not
! "a mnch opinion. want to say to counsel said
otor 3Powning thTt all the testimony taken by the
| co,n,nittre so far has been based the personal
ooinon OF the witnesses or on what has come under
tbeir obs-ryatlon on rumOrs and street stories shall
be very glad 10 see the counsel introduce new RUE ana
! stick solely to facts -, ~
That', what want to do. replied Nr. Cbttcnden.
| Immpdtately afterwOrd the Rev. Dr. McGlynn, pastor
~ - Stenhru's Roman Catholic Church requested
% gtve hs opinion as the influence Of corners and
dceIiog fin futures the public welfare. Dr. McGlynn
rave mis- opinion as the voice OF ea'uists ana mora
Seoogans that speculation IN futures and the making
~ corners were only forms Of gambling and monopoly
rhot Gu Qht to he suppressed by the state you care
for , views on monopoly general, said Dr. .Cilynn
ana n that subject is within the province OF tnc commit
! Zee / sn willing 10 give them. ,
CHAIRMAN Bo,d looked up with utlle less eedatenest
o,S ,,ore gcpiary in his usually quiet manner Ihe
committee WOld ne most p-e"eeu ~ c "H"' O' navy
10 saw" he replied 49,. j.,
mr. NIcGivnu then expressed his opinion that the
,onopov OF rent the most crying cYl OF the times
- va. fbat more than any Other monopoly which Kept
tb ototg man only two degrees above absolute
dasttufon He would have Tue Etate tax land 70 ne
mn amount Of IT'S rental value That is my plan fO
49,, ma, ,out thc millennium" he lauRliingy added
Wr T1tfeudet then stated that three Witnesses had
heen suhgasaed and failed 10 appear. From them, ht
vae INFORMED the committee could get facts which they
,,tq.d more than Opinions The committee Adjourned
mn III Tuesdsv M D. H. when the counsel VIII adyis
! what action sLan he taken IN TINS matter.