Speculation On the New York Stock Exchange, September, 1904-March, 1907

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''Economics, p. no, ^ Ibid., p. 124.
i> Speculation on the Stock and Produce Exchanges of the United States, p. loi.
CHAPTER VII Speculative "Anticipation of the Needs of the Market " The disastrous outcome of Stock-Exchange speculation in 1906 and the unsoundness of the' assumption that an un- limited investment power existed in that year which, through no fault of the speculators, was not exercised, make it ap- pear that the volume of speculative commitments for the rise went far beyond the a
...ctual powers of investment buy- ing. Indeed it seems as if speculation was carried on with- out any regard to the extent and character of the restricted investment demand. In the earlier months of 1906 specu- lation for the rise showed little tendency to adjust the volume of its operations to investors' capabilities; and in the late summer and early autumn, speculators on the long side of the market seemed to have extended themselves be- yond the utmost possibilities of any investment absorption which might have set in.

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