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Published Monthly under the auspices of the
American Association of Public Accountants

Vol. 6

MAY, 1908

No. 1

The Case for Speculation. Following the excellent article on the question, “Should Speculation be Regulated by Law?" by Prof. Henry C. Emery, in the April issue of THE JOURNAL OF ACCOUNTANCY, the editors present herewith three brief articles by Wall Street men on the negative side of this great question. It is safe to say that no stronger arguments against the policy advocated by certain members of Congress, and perhaps supported by the President, have yet been put forward. The four articles should be read by every man who thinks about political and economic questions.

It is to be regretted that the gentlemen who were invited to contribute arguments in favor of further regulation did not respond. Their silence is entirely voluntary, and not due to any desire on the part of the editors to present a one-sided treatment of the question. The omission is in part supplied, however, by the editorial on “The Case Against Speculation," which will be found on another page.

The Speculator is the Pioneer of Enterprise.

BY SERENO S. PRATT,

Editor Wall Street Journal. Both investment and speculation are operations in which present risk is taken for the sake of future gain. The difference between the two is mainly a difference in the degree of the risk. If the risk is small, the gain to be attained is also small. If the risk is large so is the possibility of gain. An investment may be considered as a purchase for gain through income, the amount of the income largely depending upon the security or risk involved. A speculation may be considered as a purchase or sale in anticipation of profit through changes in market values. The further

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