680 REFERENCES FOR FURTHER STUDY
On American security frauds, consult the Simmons addresses, par-
ticularly those of Richmond in 1924, Chicago 1925, and Milwaukee
[925.
Apart from original listing documents obtainable at the respective
foreign stock exchanges, for listing in London see “Rules and Regu-
(ations of the Stock Exchange”; for Paris, Desmaisons’ recent able
study; and for Berlin, the work of Jacobs, Laves, and Phillipp.
British underwriting features are covered bv Nash, Sturgiss, and
Tobey.
Chapter V. Dangers and Benefits of Stock Speculation
As stated in the text to this chapter, there is an enormous litera-
ture on the subject of speculation, and most of it possesses little value
decause little real effort is spent in clearly defining just what specu-
lation is. As a result, most works on speculation beat around the
bush, change their definition of speculation constantly. and arrive at
no particular conclusion.
Respecting the theory of security speculation, the American econo-
mist Emery is clearest and most consistent; his early theoretical
Columbia thesis “Speculation on the Stock and Produce Exchanges
of the United States” was, as the author pointed out, definitely justified
in practice by the German experience with anti-speculative laws, con-
cerning which Emery’s articles are classics. His view here is gen-
erally supported by Friend, Knipper, Plochmann, Pfleger, and others.
Among the American economists, Brace, A. B. Clark, Stevens, Selig-
man, and particularly Conant have also made valuable contributions
to the theory of speculation; the best British authorities here are
Crump and Ellis, while among the Germans Cohn, Lexis. and Michaelis
are most fruitful.
Recently, economists have *been inclined to stress the vital rela-
tionship between speculation and risk-bearing; here Hawley, Haynes,
and J. B. Clark foreshadowed the more recent and extensive work
of Hardy—this latter is fundamental to any real grasp of the subject.
Respecting the relation between speculation and the Stock Ex-
change, the Hughes Commission Report is still fundamental; Presi-
dent Simmons has more recently affirmed the attitude of the Exchange
in this regard in addresses in Portland (1926), Detroit (1927), and
Manchester 1929), and so has President Whitney in Chicago (1930).
Much has been written on speculation by students of the so-called
business cycle. The older school includes Burton's classic, Jones, and
also the more journalistic work of Gibson and Noyes. The newer
school is headed by Mitchell, but also includes Persons, Vance, Hicker-
