272 
Appendix 
would be below $20 at the end of five years. In that 
case he would lose on his principal the difference 
between $20 and whatever the stock would be worth 
at the end of five years. Smith, by taking these small 
chances of loss, has the guarantee of 7 per cent per 
annum, and the probability of 10 per cent more; 
while I am enabled by thus distributing the risk, in 
small lots among Smith and others, to avoid a large 
debt. The plan is a form of sharing profit or loss 
with others, instead of giving to the creditor a rigid 
lien. 
OPTION AGREEMENT 
A SUBSTITUTE FOR BROKERS’ LOANS 
THis AGREEMENT, made and entered into this ...._...._____ 
day of 192... in the City of New Haven, 
County of New Haven, and State of Connecticut, by and 
between Irving FISHER, of said City of New Haven, party 
of the first part; and .._. 
of the city of 
cereesy State of 
----y Party of the second part; Witnesseth: 
THAT, for and in consideration of the sum of One Dollar 
($1.00), by each of the parties hereto to the other of them 
in hand paid at or before the ensealing and delivery of these 
presents, the receipt whereof is hereby interchangeably 
acknowledged ; and of the mutual covenants herein contained ; 
the parties hereto have mutually and severally agreed, and 
by these presents do mutually and severally agree, as follows: 
First. Immediately following the execution of this agree- 
ment, and as nearly as possible contemporaneously therewith, 
the party of the first part will sell and deliver, or cause to 
be delivered, to the party of the second part, a certificate or 
certificates representing .......