[17] “Principles of Economics,” by Edwin R. A. Seligman, Professor of Political Economy in Columbia University (N. Y., 1905). [18] “Nouveau Dictionnaire d’Economie Politique,” by Paul Leroy-Beaulieu, Paris, 1892. [19] Consult “The (London) Stock Exchange,” Francis W. Hirst, London, Chap. VI, p. 164, Williams & Norgate, 1911. [20] “Principles of Economics,” by J. R. McCulloch, London, 1825. [21] “Speculation on the Stock and Produce Exchanges of the United States,” by Henry Crosby Emery, Professor of Political Economy at Yale University. New York, 1896. [22] In its effort to study all possible remedial methods affecting speculation on margins, the Hughes Commissioners in 1909 put this question to the Governors of the Stock Exchange: “_Would taxation of loans made on margin transactions tend to discourage margin speculation? If so, would it be desirable to graduate the tax in accordance with the margin ratio?_” To which the Governors replied: “In our opinion the taxation of loans could not be made upon margin transactions, as the lender of the money would be absolutely ignorant as to whether the securities pledged with him were carried on margin or whether they were owned absolutely. Any species of taxation upon loans would work a great injury to the money prosperity of the banking institutions of the City of New York. Loans are made to individuals and institutions upon bona fide property; they are also made to borrowers of money upon stocks and bonds offered to the institution, which are marginal in their nature; further, they are made upon securities only in part marginal, and any effort to distinguish would be practically impossible and would retard the entire business of the community. The effect of taxation upon loans would be to drive capital instantly from the city, and would force a species of financial institution to arise in every State which would profit by our inquisitorial laws, should such be enacted, to their own advantage and to our serious detriment. Such a restriction upon the free lending of money is not only unsound, impossible of enforcement, but could not help resulting in a constant evasion of the law.” [23] “The Hughes Investigation,” by Horace White, _Journal of Political Economy_, October, 1909, p. 537. [24] The governors of the Stock Exchange, when asked by the Hughes Commission, “Would a change in the practice of dealing on margins be desirable?” replied as follows: