276 SPECULATION 



15. What role is played by butter exchanges? 



16. Comment on the ethics of the speculator. 



17. What are the sendees of speculation? Three functions. 



18. Show, by the case of the Eastern Shore of Virginia Produce Exchange, 



the significance of the banking function in distribution. 



19. The bulk of speculation in the United States is of what kind? 



20. Discuss three popular fallacies concerning speculation in the organized 



exchanges. 



21. Compare fluctuations in price of oats, wheat and barley, and explain 



the differences. 



22. In what sense is it true that future trading stabilizes prices? 



23. Show the three chief services of speculation in the organized exchanges. 



24. What are the evils of speculation? 



25. What is being done now to reduce these evils? 



26. Show what the public interest requires in the matter of speculation. 



27. Distinguish clearly between fundamental reforms and mere treatment 



of symptoms. 



28. Summarize the main points of the chapter, showing the problems which 



underlie speculation. 



QUESTIONS SUGGESTED BY THE TEXT 



1. Should prices fluctuate, or should they be "stabilized"? Reasons for your 



belief . If prices are stabilized, at what point should they be stabilized? 

 And by what authority? Should the price be a "just price" or an 

 "equilibrium price"? Define "just price." Since the consumers in 

 the United States have a majority of two to one over the pro- 

 ducers, price fixing by governmental authority would likely be shaped 

 in whose interests? 



2. Outline a practicable system of production, warehousing, financing, and 



distribution that would contain the minimum of speculation. Would 

 such a system work under the present limitations and imperfections of 

 human nature? 



REFERENCES 



1. ANDERSON, B. M., JR.: "Grain Speculation and Food Control," The 

 Annalist, May 21, 1917, pp. 689-690. A discussion of the functions of specu- 

 lation, with particular reference to the grain market. 



2. "German Law Against Exchange Speculation." In Consular Reports 

 (Washington) as follows: Vol. 52, No. 194, Nov., 1896. Vol. 62, No. 235, 

 April, 1900. Vol. 64, No. 243, Aug. 28, 1900. 



3. "Good and Evil in Speculation." Industrial Commission Report 

 (Washington) as follows: Vol. 10, pp. xxxvii-lxiv, p. 188. Vol. 6, pp. 89-224. 

 Vol. 19, pp. 185-186. 



4. HANEY, LEWIS H. (Editor): "Studies in Agricultural Economics." 

 Bulletin 298. University of Texas, Austin, October, 1913. 



5. HILL, JOHN, JR.: "Gold Bricks of Speculation." Chicago, 1904. 



6. ROWLAND, HAROLD J.: "Speculation and Gambling." The Independ- 

 ent, New York, October 2, 1913, pp. 15-18. 



7. PICKELL, J. RALPH: "The Problem of Food Distribution," Rosenbaum 

 Review, Chicago, April 14, 1917, pp. 1-3. 



8. PICKELL, J. RALPH: "Rural Speculation," Rosenbaum Review, Chicago, 

 January 27, 1917, pp. 1-2. 



9. PRICE, THEODORE H.: "Short Selling and the Speculator," Commerce 

 and Finance, New York, November 20, 1918. 



10. PRICE, THEODORE H.: "On Licensing Speculators," Commerce and 

 Finance, New York, December 4, 1918. 



