The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-03-29
Tho Great Exchanges.

The Great Exchanges.
One Of the most thoughtful magazine
articles that have appeared for long
time is that upon The Function Of the
Stock and Produce Exchanges, in the
current number Of the Atlantic Monthly,
by Mr.. CHARLES A. CoNANT. Mr.. CoNANT
was formerly q newspaper man OF de-
served repute in his profession and is now
treasurer Of the Morton Trust Company
In this city. No man is better qualified
than he to deal with the subject chosen.
What Mr.. CoNANT has done, most
successfully, is to defend the great
produce and security markets a. they
are established in our own and In all
civilized countries from the charge
80 often brought against them Of being
simply gambling places, differing only
by the extent Of their operations from
the gambling places against which the
law raises its hand. He points out that
it Is possible, of course, for any man to
use the functions OF the Stock Exchange
for a species Of gambling, just as 1t ID
the determination Of any future event
or to stake money in thousand different
ways on all the operations OF life. The
broad proposition is that 1t is the abuse
and not the use OF Stock Exchange
facilities that is the evil thing.
1t Is often enormously stated that in
these markets delivery Of the commodity
bought and sold is in no way contem-
plated. Delivery always is contem-
plated in these markets, and II in the
final upehot OF the transaction the actual
delivery does not occur it is because the
creditor chooses to receive the balance
due in money rather than 60 to the
trouble of demanding and taking care
Of the commodity itself which he con-
tracted to take.
Corners are rarely successful and
rarely interfere with the general con-
duct OF legitimate or mercantile BUSH
ness. In the long run, and not q very
long run at that, actual values and the
laws OF supply and demand tell upon
stock and produce markets even more
surely than they do in any other walk
of business life, and the efforts to hold
the market against these great forces
invariably bring punishment upon
those who have rashly attempted the
feat. The so-called short seller OF
stocks and grain often suffers undue
reproaches from people who have not
reflected upon the exact nature Of his
operations and the service he performs
in the community. In 30 far az any
man having sold any article for delivery
at q future time. thinking to make a
profit on the transaction by buying the
article before the time comes for delivery
at a cheaper price than that at which
he sold it, endeavors to make money out
of the transaction by trying wrongfully
to depress in the meantime the value
| of the property concerned, he is subject
to the severest censure; but in nine cases
out Of ten the short sales Of this char
acter represent merely the judgment
Of those making them that stocks, or
| the various articles In question, are sell
ing at too high a price according to all
proper standards. His wishes as dis
tinguished from his judgment are not
disturbed, and the sales he makes tend
to attract the attention Of the public
| to the consideration Of the question
whether or not general and harmful
generalization Ia not going on.
Mr.. CoNANr aptly defines the chief
function OF stock and produce exchanges
as that OF giving mobility to capital. The
formation OF corporations and the d.
vision Of their ownership into trans.
| ferable shares have become q necessity
| of modern life. A market where such
shares can be readily bought and sold
In therefore equally neoesAary. BY such
an institution Information can be OBJ
tanned by the public as In no other way
a. to the value Of the securities dealt In
Without the publicity afforded by tbs
operations OF the stock market and by
the expression Of the average judgment
| Of thousands of people there afforded a.
20 the true value Of securities. tbs holder
Of corporation shares would bs deprived
of tbs highest srprsssion Of expert
judgment regarding tbs worth Of his
property.
As tlsss shares decline OF advance In
prios. moreover. Q test of tbs utility "a
tbs community u the various CONNER.
clsi sntsrpri-ss that have bssn started
h dirsctiy Afforded. Thsy give tbs psopls
tl,s safest possible guide ~ 10 Whistler
production o. oysrproduction y taking
plsns and ~ 10 what shrewd investors
think about various proposed eorporsts
sol.smss. similarly. In tls fsnilitIss tisy
afford Of gradually disoountins tbs eject
az future possibilities OF probabilities,
tle security and produos msrksts en-
u immsnss iinportAnns. Thsy prevent
vIds changes In values from coming upon
ths oeustsy % vpes tbs void VIII .