The Republican. [volume] (Oakland, Md.) 1877-current, 1933-08-03
NATIONAL AFFAIRS
By FRANK P. LITSCHERT

Time after time during the long and
weary months of the depression, when
prices were still tunlbling, we consoled
ouselves with the thought that if nor
malcy ever returned, things would be
different. People, we said, would never
again over-extend themselves, not in
this generation at least. And the
practice of gambling on the stock
market, and in the grain exchange,
with the public going crazy in wild
splurges of get rich quick speculation,
were gone forever. People, we said,
had learned a lot during the depres-
sion, and one of the lessons absorbed
was that there was no short cut to
riches, that wealth could only be won
by hard work and the practice of rigid
economy.
But here we are back in the old
ways again. And we didn't even wait
until prosperity was re-established.
At the first sign of rift in the clouds
of depression, just as soon as COM
modities were stabilized, and had the
appearance of pointing upward IN
price, we started out in the old merry
Lgo-round of speculation again. Evil
IDENTIFY a goodly portion of the Ameri-
can people still like easy money.
There can be little doubt that the
first Strengthening in the securities
market, and in the grain, cotton and
other commodity markets was due in
part to fundamental change in con-
ditions. The depression had won
itself out in four grinding and cruel
years, public psychology changed at
ter the bank holiday, and confidence
returned. But the markets were TAX
en- in hand again by the spectators
and soon began shooting upward at
a dizzy pace. Finally the public got
in. Then came the gentle task OF
transferring stocks and grain futures
from the hands of the insiders into
the hands of the unsuspecting public.
Of course a crash followed and we
were, told that once again the market
had "over-extended ITSELF; that the
rise had outrun the improvement in
business.
With the crash came momentary
terror and the wiping out OF thlnly
held margins. The melting away OF
values on the grain market was so
rapid that the grain exchange had to
be closed. Business on the New York
stock exchange became so heavy that
the exchange had to go on half time
to permit the over-worked clerks and
bookkeepers to catch up. Then fol-
lowed the establishing of minimum
grain prices and the placing of limit
on daily fluctuations.
A statement from the Agricultural
Department gave one Astounding illus
tration of the result of individual un-
restrained speculation as it effects
commodity prices" A man whose
identity was not revelaed owed on
July 20, on margin, about 100000
bushels of corn. He was caught in
the decline of prices and if the ex-
change had opened the following day
would have been sold out because he
could not protect his margin. This
would have meant the dumping OF
IS 100000 bushels of corn in the mar
ket. which would have caused another
break in prices, the statement said,
'all the result of the selfish specula-
ton of one individual" And this was
only one case in many.
After all it seems that the big
crash of 1929 did not teach all of US
to avoid the pitfalls Of speculation.
Tho I,,ro of aaSv riches continue And