THESE DEFINITIONS 265 



restraint of the promoter. This class appeals to the speculators, 

 especially to those " economic illiterates" in our society. It is an 

 obvious fact that society does include the two classes, conserva- 

 tives and liberals, risk takers and risk avoiders. Each class plays 

 an important and necessary part in opening up and developing 

 the resources of the country. For even the much-haloed Pilgrim 

 Fathers were settled in America by a company of merchant 

 "Adventurers," as speculative risk takers were then termed. 1 



We have with us now, as society had in times past, a class 

 willing to take risks, ready and willing to speculate. It may be 

 stated as a correct principle that an American citizen, with intel- 

 ligence and means, has a right to speculate in town lots, in agri- 

 cultural lands, in grain, or in anything else, as long as his conduct 

 does not interfere with the rights of others or damage society in 

 any way. 



What does society want, then, in the field of speculation? To 

 abolish speculation? That is clearly impossible, as well as unde- 

 sirable. The answer must be, to retain the good in speculation 

 and curb the evil. 



1. What is Speculation? As stated earlier in this chapter the 

 popular understanding of this word is somewhat vague. The word 

 is commonly used in a depreciative sense, and not in the honorable 

 sense of the old word " ad venturers." The definitions found in 

 Webster's dictionary are interesting to note. They run as follows : 



Speculate. To purchase with the expectation of a contingent advance 

 in value, and a consequent sale at a profit; often, in a somewhat depreciative 

 sense, of unsound or hazardous transactions; as, to speculate in coffee, in 

 sugar, or in bank stock. 



Speculation. The act or practice of buying land, goods, shares, etc. , in 

 expectation of selling at a higher price, or of selling with the expectation of 

 repurchasing at a lower price; a trading on anticipated fluctuations in 

 price, as distinguished from trading in which the profit expected is the dif- 

 ference between the retail and wholesale prices, or the difference in price in 

 different markets. 



Gamble. To play or game for money or other stake. To play for a stake 

 or prize; to use cards, dice, billards, or other instruments, according to certain 

 rules, with a view to win money or other things waged upon the issue of 

 the contest. 



These definitions are substantially in agreement with the 

 accredited economic usage of these terms. According to these 

 definitions, a retail merchant is not a speculator, since he buys 

 and sells with little or no regard to price fluctuations. His margin 



1 See Appendix to this chapter for an excerpt from the original charter of 

 this company, showing its speculative commercial nature. 



