Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1908-07-01

for future delivery on the Chicago ex.
CT ange taken as a model for Buenos
Ayres OF any similar exchange in this
Country there is contract, as specific
and binding on both buyer and seller
as that which exists between the mil
lei and exporter on the one hand and
tn, grain raiser and the grain ware
housernan ON the other for the deliv-
cry of the property-even specifica-
lions as 10 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-
tails 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 Il
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-
stroyed 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 benef-
cial results of the operations of the
Buenos Ayres exchange, and of other
similar exchanges the world over
where, for lack of better word. most
of the transactions come under the
head of speculation" was given re-
Gently by Professor n. G. Emery of
Yale University in his monograph
Speculation from an Economic Stand
point" He is regarded as an author
ity in Europe as well as the United
States. He said:
Speculation has always existed
wherever buying and selling mas ex-
listed IS long as private ownership
OF property is allowed and the value
OF property varies, speculation will
continue Speculation is not pro-
duct Of stock and produce exchanges.
The exchanges are the product of
modern speculation. and speculation
in stocks is the inevitable result of
the enormous multiplication Of securi-
ties 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 OF
purely artificial risks. That specula-
ton cannot arise artificially is proved
by the fact that it does not occur in
commodities where there Is no natural
fuctuation in values. Speculation
arises in response to natural causes
and supplies actual needs. That spec.
ulatior in commodities has been q
great advantage to the farmer no per.
son VINO knows anything about the
facts ega possibly doubt. Likewise II
there we're no organized market for
securities in which men were con.
stastly buying and selling to take ad
vantage OF the fluctuations. many meu
woulc cave 10 make their investments
in igno-ance OF the nature Of the en-
terp-,se in which they were invesc
Ing
Nor notwithstanding that IN the United
states prosperous times largely de-
-seDd iron the crops and the moving
Of tie crops which has built NJ
the -reSent svs-em. the exchange