One of the mental diseases of the present age is, unquestionably, the fever of speculation. If a single individual imagines that he can create wealth by magic, and change the dust of the street into gold, he is considered insane and put into an asylum; but if such an idea gets into the heads of millions simultaneously, then it is considered as a period of progressive economic development.

Perhaps, in the United States is no stronger inclination toward wild speculations than elsewhere, but we are much more liable to go from one extreme into another. Either we think the country is lost beyond redemption, or we see a most glorious future ahead of it. A few years ago an insignificant export of gold was sufficient to cause a panic, which culminated into a rush upon the Federal Treasury, and compelled the government to use extraordinary means to save their credit. On the other hand we can observe an unwarranted and blind confidence in undertakings which lack solidarity and are, to say the least, very shaky.

Upon promises and attractive descriptions many, who are otherwise careful and distrusting, risk their whole fortunes. In such cases, the rent ability of the undertaking constitutes no measure of its actual value.

We find the most outstanding cases of wild speculation at the stock exchange. Stocks and bonds, which have earned no previous dividends, are quoted way above their actual value, and are driven higher daily...

These insane speculative activities not only hurt the participants, but this extreme exaggeration and inflation of values exerts a disturbing influence upon the so-called legitimate business. Those planning reasonable endeavors and investing their capital carefully, meet with difficulties every where...

As long as speculations at the stock-exchange promise larger gains than laborious efforts, our existing resources will not be developed. The increase in wages, therefore, cannot keep pace with the rising of prices for consumptive goods. The demand for labor is less by few than what it should be in view of the abundance of money.

It is understood that a crash must come, but it is questionable whether it will end wild speculation. Every panic originates at the stock-exchange, spreads to the banks, and from there, upon all trade and commerce. However, warnings are never heeded.