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Show StOck Legislate Against It ! g 11 TSut Don't VJQIIlbllllP Handicap Business Iiy DEAN JOHNSON. of School of Commerce aad Flnanc, New York Unlverally f" 1 It is pertinent for us to consider the extent to I ""k wliich the money of the banks is used in speculation, I and whether the evils attending such employment of Wpi tR ')tm'c deposits may not be minimized through a change flf1 mMm m 'ne banking system. As matters stand, a man, say, ST jJMm w--1 $10,000 to invest, goes to his bank and borrows IIWm JlH BUca further amount as tho money rate may make it ap-IJH ap-IJH l'car profitable. With this he makes his purchase lflU and puts up as collateral for the loan the securities, Hjfl which then become subject in tho matter of their rc-JJ. rc-JJ. s.naotiyrN, jj 8ne not oniy j0 niarkot conditions and the desires of the operator, but to the fluctuations of the money rato r itself. Meantime it is tho bank's funds that have been in actual employ ment. When you find a means to regulate the money rate you will thereby Tegulate speculation. I am disposed to believe that 90 per cent, of the results of speculation in this country are beneficial, broadly considered, and that perhaps ten per cnt. are detrimental to the best interests of tho nation. Tho harm comes through tho developing of tho gambling spirit, particularly among young men. I find here among my students that any mention of the stock exchange and its affairs attracts instant attention; they know all about bucket shops and their methods of working, and there is hardly any other subject on which they are so keen as one relating to trading in the security and commodity markets. ; fJ But tho way to deal with that danger is not to handicap business in order that the youth of tho land may be brought up in a state of blissful ignorance and free from temptation. Tho thing to do is to educate them to a proper appreciation of the relationships of the factors of industry, and to include the social system that furnishes this education, adequato enforcement of laws protecting investors against misrepresentation and fraud. |