New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1884-05-30
Tile NAIIONIL VICE.

Many times during the past two years HE
TRIBUNE has urged that the encouragement
of speculative sales in the markets for secull-
ties and products, was the most serious evil IN
the commercial world and must ultimately
bring about grave disasters. Sales effected by
peoplc who did not own the property sold, 1t
was urged. caused the markets to become es-
scntially fictitious and false, deprived
them of the nghtful correcting influence
of considerations of actual value and of
demand and supply, and thus ex-
posed honest investors, producers and
traders to constant losses. Moreover the
announcement Of the speculative spirit demon
allied the public, seduced many men from the
maths of honor, led 10 violation Of the most sa
cred trusts, and caused outrageous mismanagc-
mcnt of corporations for the benefit OF lndiyid-
uals in their gambling ventures. 1t has been
shown. too, that the knowledge that
the markets could be and often were
controlled by cliques and pools, IL abb
solute disregard of the Legitimate considcra-
tons which should govern buying and selling,
continually led to the organization of such COM
binatons, and to the prevalence of foolish
faith in their Omnip0tencc, so that great
many men of experience and ordinary good
sense were drawn into most unreasonable ven
lures or undertakings, in the belief that pool
could defy the laws of trade.
Is it not time, in the light of recent events to
recognize the truth and Importance of these
statementsY Has not the country seen
enough decentralization, enough prOstitu-
ton of official trusts, enough disre-
gard of honor by corporate managers,
TO be convinced that the temptation is one
which ought to be limited as far as possible
Have we not seen the foreign trade of the
country crippled long enough by corners and
rings in the markets for products? Have we
not seen productive industry Frustrated often
enough by fictitious prices and the wild fiuctu-
ations which gambling operations cause! Even
in the market for securities, have not investors
learned that the most solid property is not safe,
when wreckers who own none are enabled by the
practices of the street to sell more of it than
anybody can buy Have not the banks learned
that, so long as such fraudulent markets are
permitted to make the current prices of
securities, even the best stocks and bonds are
not sufficient cOllaterals for loans Specula-
ton there always will be, of course. But the
question is whether that vast expansion of
speculation which comes from the selling of
borrowed property can safely be tolerated.
The active operators and brokers, a year or
two ago. were the most strenuous In opposing
these views Mr.. Keene was of opinion that
unlimited speculation was Of public service
But he has found that it has depressed his
securities far below what he considers their
value. OF several bank presidents, who at
that time advocated unrestrained speculation, at
least two are at present accused of crime or fugi
tives from Justice. Of the leading brokers, who
thought it would injure business to put any
restriction upon sales how many have lamented
months of utter stagnatiOn because the public
had Withdrawn from fictitious markets. How
many have lost heavily by the collapse of
customersY Mr.. Gould himself strong as he is
in the market, has surely had cause to reflect
that the people who can sell what they do not
own have power TO deprcss the value of prop
erty beyond all reason.
Individual interests, however layge, are in
significant in comparison with the vast public
interests affected. This species OF gambling
ought to be restricted, because it does harm to
every form of honest industry and trade. The
power to sell unlimited quantities of property
that belongs to somebody else is one that no
man ought to possess. 1t makes no difference
how large his means or how great his credit
may be. Every such sale makes the market
deceptive and fraudulent. 1t adds to the
proper influence of those who really hold
and want to sell the improper influence
of those who hold nothing, and only
want to bet. The encouragement of this kind
of gambling has caused rottenness in many cor
porations and transformed many respected
citizens into criminals. All customs of ex-
changes that encourage or tolerate this prac-
tice. by supplying facilities Tor its indefinite
expansion, are as contrary to public policy as