Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1908-06-25

c9r future delivery Oh the Chicago eX-
change taken as model for Bueno5
Ayres or any similar exchange in this
country there is u contract, as specific
and binding on both buyer and seller
Is that which exists between the mil
Ter and exporter on the one hand and
the grain raiser and the grain ware
hOuseman Oh the other for the deliV-
cry Of the property-eVen sDecitica-
tons as to grade and condition, stor-
age charges, insurance, etc No con
tract between the United States Gov
eminent and the big packing interests
in Chicago for army supplies ever was
more explicit or binding in all its de-
calls than that which is made between
buyers and sellers on future contracts
every hour of every exchange day dur
ing the year. This system makes i
possible to deliver the crop Of this
great producing nation as the demand
at home and abroad require it, and to
give a comparatively stable value to
the surplus on hand after harvest.
The current experience in Argentina
has demonstrated from an opposite
side the same proposition that was
worked out in Germany several years
ago when an act was passed forbidding
all sales for future delivery. Argen-
tina created the system and already
has gained immensely. Germany de-
srrOyed and lost The German act did
not stop speculation, but according to
all authorities, it resulted in greater
lamentations in prices than had Oc-
CURED before
The economic reason for the benei-
cial results of the operations of the
Buenos Ayres exchange, and of other
similar exchanges the world over
where, for lack of a better word, most
OF the transactions come under the
head Of Speculation, was given re-
Gently by Professor H. c. Emery of
Yale University in his monograph
Speculation from an Economic Stand
point" He is regarded as an author
ity in Europe as we'll as the United
States. He said:
Speculation has always existed
wherever buying and selling has eX-
isted As long as private ownership
Of property is allowed and the value
of property varies, speculation Will
continue. Speculation is not a pro
duct of stock and produce exchanges.
The exchanges are the product Of
modern speculation. and speculation
in stocks is the inevitable result Of
-he enormous multiplication Of securi-
fieS due to the extension of the cor
porate methods of business without
which the material progress of the
last half century would have been i'm
possible
Speculation is the assumption Of
inevitable business risks of, huctuating
value: gambling is the assumption o
purely artificial risks. That specula-
ton caunoJv arise artifcially is proved
by the fact that it does not occur in
commodities where there is no natural
fucruation N values. Speculation
arises in response to natural causes
and supplies actual needs. That spec
UlatjOn in commodities has been &
great advantage to the farmer no per-
son who knows anything about the
facts can possibly doubt. Likewise if
there were no organized market fol
securities in which men were con
stantly buying and selling to take ad-
vantage of the fluctuations, many men
would have to make their investments
in ignorance of the nature of the en-
terprise in which they were invest,
ing"
No-hw'tA-tanding that in the United
$500 ~ ~erous times largely de
~ the crops and the moving
90 80 crops" which has built W
the present system, the exchanges