The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1908-02-12


ments.
zone thing is certain; that whatever
its shortcomings there is no organized
body of business men where the stand
ards of integrity are higher and more
fixed than on the New York stock ex
change. It's transactions are carried
on chiefly by word of mouth; the
j spoken word being as sacredly kept as
lsigned contracts. Further, there is a
board of governors to whom any COM
iplaint can be carried, whose purpose
is to prevent all abuses within their
power ana to maintain the highest pos
sible standards of business. All infrac-
tions of the rules are promptly pun
Iished. Certainly, whoever begins
throwing stones at the New York
stock exchange should first look and
see if his own window panes are not
in danger.
"a great deal of nonsense is also
heard about speculation Now, specula-
ton. like many other good things, may
be carried to excess, and is then in
furious and open to the severest criti-
cism. But speculation within reason
able limits is most beneficial. 1t is one
of the main incentives to enterprise.
Crush this disposition to venture, or
the Willingness to accept a risk, and
enterprise would anguish, trade and
industry would decline, and we would
gradually settle down to certain in
dustrial and commercial decay.
No Dealing in Options.
"The presidents attack on options in
his last message to congress certainly
cannot apply to any business trans
acted on the New York stock exchange,
as options are not dealt in there. OPP
tions of from three to sixty days were
dealt in a great many years ago, but
were abandoned long since. Every
purchase and sale now made On the
floor Of the New York stock exchange
provides for delivery on the day Of
purchase, or the following day. and
payment made therefor upon delivery
of the security, and no law can posi-
bly, be passed by congress, or the
state legislature. to prevent a broker
thus buying securities and transferring
same to a customer on credit on terms
satisfactory to himself, any more than
a law could be enacted to prevent a
dry goods, hardware, grocer or mer-
chant in any other line from extending
credit to his customers Nearly all the
business of the world is thus transact
ed and could not be done on large
scale otherwise. In London, however,
most of the business is virtually on an
option basis, as it provides for fort
nightly settlements, there being two
settlement periods each month, which
can be extended from time to time in
definitely at the option of the parties
connected Herewith.
Defends Futures.
| "The method of doing business in
futures prevails on the cotton and
produce exchanges and could not well
be transacted to the extent of making
an active market for the benefit of the
producers. on any other basis. in nv
opinion. To do away with dealings in
futures would simply do away with the
Exchanges, which would be to the dis
advantage of the farmers. A farmer.
as soon as he ascertains that his crop
lY0S
long 1t Will take to put it in his barn,
thrash it out and transmit it to Chi
cago, and he sells it to deliver during
the month or later one, thus ding
himself of any further risk of f,uctua.
tlon In the price, and is made happy
thereby. If he is deprived of SUCH a
market, it puts him back to the old
way of doing business, when the large
dealers from Liverpool, Chicago and
other quarters sent their agents direct
to the farmers at harvest time and by
bringing all kinds of discouraging in
nuences to bear upon them made them
sell at a fraction above tho coc+ of
productions; as against this they are at
present able to hold their crop hack
and get the highest price. In having
the ready market which now exists.
the farmers have all become rich. Why
therefore, change the present plan.
winch has given so much prosperity to
the producers of cotton and other pro-
ducts, to what might be likely to re-
verse their present satisfactory condi-
ltion?"