The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1908-02-10

! sonable limits is most beneficial. 1t
one of the main incentives to entel
prise. Crush this disposition to yer
ture, or the willingness to accept a ris
land enterprise would anguish, trad
and industry would decline, and W
should gradually settle down to Gel
tain industrial and commercial decay
In the present highly developed stat
lof modern civilization, speculation is
motive power OF the first Importance
and being part of human nature II
Iself cannot be eradcated. In TIL
course of ordinary business, specula
ton is the natural balance wheel o
trade, furnishing a class of OPERATOR
who are willing to buy or sell whei
others for various reasons are disin
| clined Moreover, by keeping up the
conflict between large body OF buy
ers and sellers the true value of Sc
curitles or commodities is more safely
| determined than when speculation is
entirely absent. The short seller is
always buyer at lower price, and
| therefore a supporter In case Of de-
cline. Conversely the long buyer re
Istrains undue advances by selling To
secure his profits. Again, the barker
h better able to Judge the value OF col
lateral in free and active market;
a factor which is much to the advant
age Of both legitimate borrowers and
lenders who may not have the remot
est interest in speculative movements
The giving of credit and the making
of loans is very largely dependent
upon thorough test Of values such ali
speculation only often determines. OF
course speculation is sometimes car
ried to excess and much injury re-
suits in consequence. Such excuses
which are the consequence Of defects
in human nature must always be ex.
pected and are better corrected by
experience and public opinion than
by any artificial regulation. Who has
not the right tc profit from good bust
ness Judgment, especially il that judy
ment incurs the risk of the future:
and who should complain ii his own
judgment leads him into losing trans.
actions? Concerning speculation there
is also another folish misconception
is frequently confcunded
with gambling although the two are
different Speculation is al
ways based upon knowledge and facts.
whereas gambling deals solely with
chance. II is fallacy to suppose that
any but small percentage of trans
actions on the New York Stock Elk
change come under the mead OF gamb- |
ling. What difference is there between |
buying stocks and bonds on part pay |
nent, or margin as ii is often called. |
and buying land or houses or other |
with only one-fifth in cash |
md carrying the balance on mortgage |
Such transactions are speculative, are |
strictly moral and entirety q matter |
II business judgment. All operations
into tho future and necessar-
~ speculative. SO far as the New
FORK Stock Exchange Is concerned its
ules are drawn for the strict purpose
# protecting legitimate trading, and
IN actual tranfer of property is requir-
d for every transaction. OF course,
buses exist in all trades and will con
inue to exist; rendering ii the more :,
necessary TO use a little intelligent
tscrimination before understanding
o loose denunciation, which may east.
y do much harm and no good.
The presidents attack on options in
lis last message to congress certainly
annot apply to any business trans
cted on the New York Stock Tx.
hange, as options are not dealt in
here. Options of from three to sixty
avs were dealt in a,great many years
go, but were abandoned long since