Chapter I: Preface

In so far as these pages reflect the thoughts of a busy stockbroker, distracted by many duties and lacking in literary skill, they have but little merit and the writer entertains no illusions regarding them. But in the many quotations from the writings of the world’s foremost economists that are here presented, and in the various legal and historical precedents cited, perhaps it is not too much to hope that this book possesses some slight value as a contribution to the vexed and vexing discussion of the Stock Exchange, and that it may serve in some degree both to dull the sharp edge of uninformed criticism and to strengthen the hands and hearts of loyal friends of a greatly misunderstood institution. The public is asked to disregard the utterances of demagogues and self-seekers and to consider facts. That done, the American spirit of fair play may be confidently relied upon.

The Stock Exchange authorities have had no hand in the preparation of the work, nor does it bear their endorsement. I say this lest it be thought an official _apologia_. Had it been such, the work would have been much more skillfully done, and its value greatly enhanced.

THE AUTHOR.

CONTENTS

Preface v

CHAPTER PAGE
I. The Functions of the Stock Exchange 3

II. The Uses and Abuses of Speculation 35

III. The Bear and Short Selling 71

IV. The Relationship Between the Banks and the Stock Exchange 99

V. Publicity in Exchange Affairs; Cautions and Precautions 131

VI. Panics, and the Crisis of 1907 183

VII. A Brief History of Legislative Attempts to Restrain or
Suppress Speculation 223

VIII. The Day on ’Change, with Suggestions for Beginners 261

IX. The London Stock Exchange, and Comparisons with Its New
York Prototype 323

X. The Paris Bourse; a Monopoly Under Government 383

Appendix. The Report of the Hughes Commission 415

Index. 447