“In reply also to the prevalent opinion that ‘short selling’ unduly depresses security values, it should be stated that ‘short sellers’ are frequently the most powerful support which the market possesses. It is an ordinary affair to read in the press that the market is sustained or ‘put up’ at the expense of the ‘shorts’ who, having contracted to deliver at a certain price can frequently easily be driven to ‘cover.’ Short selling is thus a beneficial factor in steadying prices and obviating extreme fluctuations. Largely through its action, the discounting of serious depressions does not take the form of a sudden shock or convulsion, but instead is spread out over a period of time, giving the actual holder of securities ample time to observe the situation and limit his loss before ruin results. In fact, there could be no organized market for securities worthy of the name, if there did not exist two sides, the ‘bull’ and the ‘bear.’ The constant contest between their judgments is sure to give a much saner and truer level of prices than could otherwise exist. ‘No other means,’ reports the Hughes Committee, ‘of restraining unwarranted marking up and down of prices has been suggested to us.’”[31] So much for the functions of the bear in markets that deal in invested capital. In the commodity markets he becomes of even greater value, indeed, he is well-nigh indispensable. Mr. Horace White, who was the Chairman of the Hughes Investigating Committee, cites this instance: “A manufacturer of cotton goods, in order to keep his mill running all the year round, must make contracts ahead for his material, before the crop of any particular year is picked. The cotton must be of a particular grade. He wishes to be insured against fluctuations in both price and quality; for such insurance he can afford to pay. In fact he cannot afford to be without it. There are also men in the cotton trade, of large capital and experience, who keep themselves informed of all the facts touching the crops and the demand and supply of cotton in the world, and who find their profit in making contracts for its future delivery. They do not possess the article when they sell it. To them the contract is a matter of speculation and short selling, but it is a perfectly legitimate transaction.