[22 THE WORK OF THE STOCK EXCHANGE 
else, can declare it to be an unmixed blessing. But neither can 
the sincere but insufficiently informed critic afford to proclaim 
it to be a pure and unadulterated evil. And there is this diffi- 
culty about arriving at a fair conclusion regarding its com- 
parative benefits and dangers, that the undoubted harm which 
it inflicts upon many speculators is very human, graphic, and 
easily described, while its economic benefits are abstract, indi- 
rect, and almost impossible to explain without the use of tech- 
nical and unfamiliar words and expressions. It is natural, 
therefore, that our economists have rarely attempted any popu- 
lar presentation of the subject, but instead have abandoned that 
Geld almost entirely to the editor who must get his paper to 
press without delay, and to the politically minded minor states- 
man. So long as the human race prefers watching motion 
pictures or reading fiction to struggling with the “dismal 
science” of economics, the harm of speculation will in the popu- 
lar mind probably possess an emotional quality which even a 
thorough realization of its invaluable services to society never 
can have 
Definitions.’ —Most of the erroneous notions concerning 
speculation arise from a vague or incorrect definition of the 
term. In this respect, even the best English dictionaries are of 
little help, since not only “speculation” but also ‘investment’ 
and “gambling” are general terms, each with a variety of 
meanings. To some extent, too, they are used almost inter- 
changeably. 
[t is obvious that if these words are to possess any exact 
sconomic meaning, stress must be placed upon the economic 
actions or deeds to which they refer. It is unfortunate that so 
many economists have gone no further in defining speculation 
than to refer to its derivation from the Latin speculare—to 
lcok at from afar—and to state that speculation consists in the 
intelligent attempt to deal with future uncertainties. It is more 
fruitful to see just what it is that the speculator actually does, 
t See Appendix Va.