The Bridgeport evening farmer., 1913-05-15
 ADVOCATED BY
 HENRY CLEWS

New Haven, May 15.-In an address
 on speculation, and the New York
 Stock Exchange of which he is the 3rd
 oldest member, Henry Clews of New
 York yesterday told an audience of
 Yale students that speculation was the
 best method he knew of to adjust diff ferences of opinion as to the future
 source of prices, whether of conmod- lties or stocks, because the ultimate
 result of Speculation is the nearest approach to correct values.
 Spec uIation for a. fall in prices in any commodity he continued, ''is
 based principally on the pres11In ption of an oversupply, and the production of the particular product is checked until prices recover.
 Speculation for a rise in prices is based on the presumption of scarcity or short supply, and it's direct effect is to quicken production and restore the equilibrium of prices. Speculation consequently greatly benefits the country at large. It is, unfortunately, sometimes greatly carried to excess. and this has given rise to great amount of adverse criticism
 Isolated incidents of intemperance, however, he said, should not be per mitted to cloud the ideal economic benefits of speculation. Instead of causing panicky conditions, he declar- ed, it is one of the grea test factors in theS world for their prevention. Without speculation on the New York Stock Exchange, he asked, could the vast sums of money needed for the building of the railroads of the coun- try have been raised? He contin- ued:
 '1In reply to many mistaken critics regarding Wall street, I unhesitatingly register my emphatic opinion that speculation in stocks, as conducted on the New York Stock Exchange through Stock Exchange members. is no more gambling than speculation in real estate or merchandise. All trade is more or less speculative, because it involves risk
 The most legitimate of all invest ments, he said, is that of the farmer, but even that, because of his depend ence upon the elements. is speculation.
 '+To sum up,'' he said speculation is a science and both specula tors and investors are engaged in speculation, in different degrees. There is the difference between the specula- tor and the gambler. The speculator operates upon judgment, which in turn is based upon a careful study of all the numerous and complex inf1u- ences affecting values. The gambler, on the other hand, is one who at best upon nothing more than the laws of chance; and even of these he usually has but a limited knowledge, and is likely to act on the mere flip d. At times the speculators' operations may be harmful, and particularly when like many other good things, l they are carried to excess. But in the long run he is a benefit to the com munity contrary to the opinion of many well meaning but ignorant peo- pie. The gambler, on the contrary, l Is a positive injury to society,"
 The more thorough and searching an he said, the better will be the light in which Wall street and the New York Stock Exchange will | appear, t'for it will be found that hon. pr, honesty and fair dealing are the of it's business, and that any wrong doing is in violation of the rules of tine Stock Exchange con- trary to its practice and even renders the offender liable to suspension or ex- pulsion.
 Wall street. pr. C1ews. told his hear SITS, is not only a necessary market for the exchange of securities and the purchase of incomes, but is a healthy stir1 1ulent to the rest of the business If the country, and a great business 5arometer