The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-08-02

few months ago. They predicted, on the
history of war time financial experience.
that speculative phenomena having more
n tinge OF gambling Juror were to
be looked for during the war. The re-
demonstrations OF the validity OF
these prophecies not only come as no
surprise but they tend to prove the
existence OF conditions which give specu-
lation much to anticipate In the way Of
economic expansion.
Innationary forces have been let loose
in the world at a time when mems
minds have been Jared out of tho
steady, orderly habits and processes of
a peaceful atmosphere. The spirit OF
adventure has been revived and a dis
position to take chance will the future
has been excited which is a token that
trade and industry are themselves to go
pioneering in the exploitation Of oppor-
tunities for profit. Warnings against
the pitfalls which Turk in the path OF
the Spectator cannot he too frequently
or emphatically addressed to the unin-
formed public which risks its dollars in
evanescent margins, but the retur Of
speculative activity to Wall Street has
to be accepted as the signal Of the new
era which dawned with the European
war.
1t Is the far reaching import OF the
speculative phenomenon which renders
more or less absurd much OF the criti-
cism currently bestowed upon It. as. for
example,. that the Stock Exchange Is
avoiding it's responsibility by not exer-
cising its arbitrary power to regulate
the speculative performance. As a
measure of speculative restraint max
!mum prices have been suggested by
analogy from the minimum prices which
were fixed for the experimental stages
OF stock Exchange resumption last win
ter. Proposals have been made that the
privileges of the Stock Exchange mar
ket be withdrawn from stocks which
swing violently up and down only to
soar to new high levels on a tumul OF
trading provoked by reports OF large
earnings conjecturally TO accrue from
vaguely estimated dimensions OF war
contracts. Other happy thoughts have
been mooted along the same line, but for
II evils OF the speculation in which
Wall Street ~ been i~ndulging this year
these remedies would be no cure
In the outside market for unlisted
stocks there has been a more immense
Imitation OF prices than any which has
yet taken place on the Stock Exchange.
The course OF the ordnance shares need
only be cited in proof. As for the
Broad Street curb market. the astonish-
Ing assortment OF miscellaneous stocks
which are there classed, reasonably or
by wild inference, in the war order cate.
CORY (~although the truth is thai to-day
all securities are war securities, the DIFF
ferences between them being mainly a
matter OF degree) have been going q
gambling pace which beggars descrlp-
ton.
All that would he accomplished by
destroying tho freedom OF the organized
market maintained on the Stock Ex.
change through hedging It about by arti-
fcial devices would be to drive trading
OH tho Stock Exchange and transfer
speculation to an outside. u~norganiZed.
unsupervised market, lacking the sa fe-
guards afforded by the wide publicity
given to Stock Exchange transactions
II infinitely more replete with posi-
biiitles Tor relieving the unwary and un-
instructed public OF its money. The
Stock Exchange authorities should be
Ilgilant to prevent abuses OF the regu-
lar market, but speculation Is not with
In their control. The facility with which
a panic market was made in New Street
last autumn during the suspension of
the Stock Exchange shows what would
happen IT the organized market under
look to regulate speculation, for the
speculative spirit will not be denied.
After all the quarrel Is solely with the
exaggerated gambling aspects OF the en-
% iror to express in quoted values the
'tStors operating for a profitable ex-
panston of industrial n mercantile
activity, to discount the prospective en-
hancement of values resulting from the
influences which are at work nowadays
in the economic field n converge with
tremendous effectiveness on this country
because OF the advantages of its geo
graphic, political, commercial and flnan-
cial position In relation to the war.
Some OF these advantages may be los.
or transformed without material loss in
the event of an alteration OF u statu.
of neutrality. but II Is difficult to see
what could lessen our importance as
the banker and merchant nation of the
world during the war.
The fate which ALWAYS oyertakes
most public punters In the stock market
regarding speculation for the rise as
simply a form OF gambling is undoubt-
eddy awaiting the new generation of
gamesters, but speculation In securities
is not all. nor by II means chiefly,
gambling, At bottom II IL the ex.
pressed cone isus OF an com
posite OF actical Judgments ON cor
pordte conditions and prospects, and the
July speculation in Wall Street was
a significant phenomenon which can be-
most i~ntelligently regarded as n toker
that a revival Of enterprise has begun
TO make itself felt in quarters most
sensitive to 1t and most concerned &c
detect It. Properly considered, the re.
cent speculation which compares so re,
markably with the panic conditions OF
"A year ~ has been an answer to the
impetus for business betterment gen.
Grated In manifold ways by the war. II
Is In its d~iscounting phases that It ha
run to extremes and threatens to becom,
detrimental. but It In precisely in those
aspects that tho speculation has had IL
most optimistic forward bearing.
II the speculation has been one sided
that IL bound to correct itself In tim
unless all the ~postulates on which II
has been founded are misleading and fal
lacious. There can DO no excuse for the