QUESTIONS ON THE TEXT 275 



constructive suggestions. The business world recognizes that 

 many risks cannot be eliminated but can be distributed, as is 

 evidenced by fire insurance, rent insurance, liability insurance, 

 and the many other forms of insurance. In agriculture, crop 

 insurance, hail insurance, live-stock insurance, and the other forms 

 of agricultural insurance go a long way towards distributing the 

 risks of production. In marketing, however, some risks and some 

 speculation seem difficult to distribute, and hence remain to be 

 shifted to the shoulders of the speculator. 



To Sum Up. Gambling, in the form of lotteries, has been long 

 since outlawed and abolished. Gambling in many milder forms 

 is falling into social disrepute. The social instinct is against it. 

 Unorganized speculation is now a matter of public clamor and 

 popular concern. It is a symptom, rather than a fundamental 

 condition. But "the people hath spoken," and the ban of dis- 

 approval has been placed on some forms of unorganized specula- 

 tion but not on others. Confusion exists. No sharp definitions 

 have been evolved. The farmers themselves, while generally con- 

 demning "speculation in food products," unblushingly speculate 

 in the land itself. And the land question is more fundamental 

 and more serious than the food question. Less attention should 

 be paid to speculation, and more to proper distribution, storage, 

 and credit. As to organized speculation, it is working out its 

 own rules, under the glare of publicity. It is performing an eco- 

 nomic function which should be continued till a better and cheaper 

 substitute can be found. Then it will cease to be a "problem." 



QUESTIONS ON THE TEXT 



1. Cite evidence from common observation that important words are often 



used with ambiguous meaning. 



2. Discuss the usage and meaning of the following terms: hoarding; corner- 



ing the market; cash and future trading and speculation. 



3. Distinguish two social classes, from the economic standpoint. 



4. To which class was the founding of the Plymouth Colony due? Cite 



evidence from the Charter of this colony. 



5. Formulate a principle covering the right to speculate. 



6. What does society want in the field of speculation? 



7. Define speculation. Compare the dictionary definition with the ordinary 



economic usage. 



8. Is the retail merchant a speculator? 



9. Define short seller. 



10. Is the farmer a speculator? 



11. Define gambling. Distinguish from speculation. 



12. Compare the volume of future trades with the volume of bank deposits, 



and show economic significance. 



13. Distinguish two kinds of speculation. Illustrate each. 



14. In which form do most frequent abuses occur? 



