The times. [volume] (Richmond, Va.) 1890-1903, 1895-07-17
rrTIHF AND PRESENT CONTRACTS
FOE STOCKS A>DrAEM PRODUCTS.

ri. r,mcs has received the following
letter:
Henrico Co. Va, July H. lsso'
To the Editor of The Times:
sir-Your articles on vice and decadehce
Of public morals meet with my hearty
srnroval trust that you viii let me
aai5 VOL, 20 on. 1t is positively appal-
ing to think Of the amount OF wee anu
Troud that is going on I'm our very midst
~ Won see mt 10 notice this from an num-
lie reader of your valuable paper
would be glad II you viii define your 20
sition on dealing I'm futures. both IN gram
and stocks. l wish everybody would take
vour paper. Yours truly,
f. f. RFNNIE.
II Is very important that correct ideas
should be had regarding the transactions
that occur daily in stocks and farm pro-
ducis and we shall therefore 20 over the
subject fully, both as to present and iu-
ture contracts.
Transactions in stocks and bonds are
confined principally to contracts for i'm
mediate delivery. Such contracts for
future delivery do rot constitute suiii-
Gent quantity to be worth especial atten-
ton.
There are two places for dealing IN
stocks. the bucket-shop and the regular
brokers' Office There are no real trans
actions at the bucket-shop. The sub
stance of the transaction there IS that
a customer bets the keeper Of the shop
that a stock or a bond will so up or
down. and wins or loses according to the
event. This is gambling pure and sim
PIE. and these bucket-shops should be
broken up by law. All the contracts
made there are void.
But the transaction in stocks AT reg
ular brokers' office is a very different al
fair. You order broker IN Richmond
10 buy you 100 shares of Southern rail-
way stock. lie te!egraphs that order
10 his correspondent IN Now York, VINO
is a member OF the New York stock EN-
change. and the latter goes on the stock
exchange and buys the stock at public
auction. or sells it n the order was 10
sell Next morning all these transac-
lions OF the day before are settled up al
what amounts to a clearinghouse
amongst the brokers. and every purchaser
~ stock is compelled to receive the stock
he bought the day before. and to pay for
It There are no fictitious transactions
on the New York stock Exchange. Nv
cry one is a real transaction IN which the
price Of the property is paid and the
stock is delivered.
Before the Richmond broker took TINS
order he required his customer TO deposit
with him. in cash, ten per cent. OF the
cash value of the stock TO be bought, 70
secure him against loss in the transao-
lion. When the stock is delivered next
morning II and the ten per cent. put up
by the customer are deposited with a
bank which lends the money 10 pay foE
the stock.
We can see no reason why such trans
actions should be interfcied with by the
law. The contract is in no wise differ
ent from any other contract OF purchase
ana sale. and 10 as lawful ara as ham
less in itself as any other contract. IL Is
true that some men devote their nvos &c
buying and selling stocks without informa'
ton and without Judgment. ard many
therefore. get ruined by II. But that Is
their business. SO long as they actually
buy the property ard sell me
property and use their own means
for the transactions the puoiS
has no concern with the matter. They
have the right TO make fools OF them.
selves n they choose. and. II they do. II IS
nobodys business but their own.
A man may ruin himself buying ano
selling dry goods or hardware without
information ard judgment, hut perfect
freedom in buying and selling dry goods
and hardware is not TO be intoriefee
with because some men turn fools whef
they deal IN them.
And now as TO future contracts respect
ing farm products.
The bucket-shop figures here equally
as In stock transactions and is equally
10 be condemned. But the genuine
transactions in futures effected upon tA'
grain. provision. and cotton exchanges
are most useful, are lawful, ana are harm
,sss IN their nature. These transactior'
.ra onerated thus: A man In kschmonc
orders his broker to buy him 1910 bush
-. AZ vheat. 70 Be delivered ssptempsl