Who it is for
For readers interested in price stabilization, commodity inventories, bona fide trade, corrective speculation, market utility, and the boundary between legitimate risk-taking and gambling.
English reader · Project Gutenberg #59518
Chapter XIV. In What Respect Is Speculation Useful in Markets Generally?
The Theory of Stock Exchange Speculation. English-only reading by default; switch among English, Chinese, and Spanish, or compare languages side by side.
Chapter summary
In conclusion, Crump distinguishes corrective speculation from time-bargain gambling. Buying genuinely cheap goods for cash or ordinary credit, or selling unusually dear goods from real inventory, can stabilize relative prices and benefit the community. He contrasts these legitimate speculators with illegitimate and reckless operators who lack bona fide purchase or sale intentions.
Modern reader note
The chapter anticipates modern arguments about arbitrage, inventory, liquidity provision, and price discovery, but its categories are normative and historical rather than formal economic definitions. Modern derivatives can serve legitimate hedging and price-discovery purposes as well as speculation.
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