COTTON 235 
While this was a legitimate enterprise, it was 
nevertheless largely speculation, each merchant 
gaining or losing in proportion as his judgment was 
good or bad. 
LEGITIMATE AND ILLEGITIMATE SPECULATION 
This sort of speculation all of us are given to: 
the merchant who purchases early in the season 
because he anticipates higher prices later; the far- 
mer who secures feeding stock in the belief that 
prices will advance, netting him a profit greater 
than the mere value of the finished animal at the 
time of purchase; the housekeeper who purchases 
coal in summer, believing that with the coming of 
winter prices to the consumer will advance; the 
consumer of any commodity who looks ahead and 
anticipates a higher price than that commodity 
is then commanding—each i is engaging in specu- 
lation, pure and simple, but nevertheless doing a 
legitimate thing, dictated by wisdom and foresight. 
“Let this idea of speculation be distinguished from 
the professional speculative phase which SU ee 
es or is in every sense a “gamble.”” When you 
make a purchase of real estate you may do so be- 
cause of immediate needs: or you may make the 
purchase in expectation of a rise in value: you have 
need for it now or anticipate a demand for this 
holding in the future. It is now worth something 
to you—you anticipate that it will be worth more 
at a future time; hence you make your purchase. 
If your judgment i is good, if it is accurate, you profit 
on your risk; if otherwise, you may lose. This 
trade—this phase of business or commerce—is 
entirely consistent with morals, with commercial 
standing, with business principles. 
