mixed nature. In nearly all wagers, judgment in some degree influences
the choice of sides. One man bets on a horse whose pedigree and
performances he knows thoroly; another judges by the horse's
appearance as it comes upon the track. The professional bookmakers
have the latest possible and most exact information on which to base
their bids.

In the bets made on one's own prowess, as on speed in running, the
chance-taking is still on the uneconomic side of the borderland,
certainly if the running is for the sake of the wager, not for
pleasure or for a useful purpose. A premium won by a runner for speed
in delivering a message of economic importance presents an essential
contrast to the winnings in a wager.

Finally, the very borderland of difficulty is reached in the purchase
and sale of goods in the market with a view of profiting by chance
changes in price. The purchasing and holding of land, lumber, grain,
cattle, and other tangible and useful things, that need to be stored,
held for buyers, or taken to market, must be judged liberally. The
quality of gambling depends somewhat on the motive as well as on the
ability of the trader. The enterpriser dealing with real wealth, and
fitted to take the risks both because of his resources and of his
exceptional knowledge, needs the motive of gain in such cases, and in
a sense can be said to earn socially what he gets. The motive of the
uninformed must be a blind trust in luck, and a hope to gain from a
rise in prices which they are quite unable to foresee or to explain.

Sec. 4. #Insurance: definition and kinds.# The large element of luck in
industry due to unavoidable chances has something of the same evil
character as gambling. It brings unearned prizes to some and to others
unmerited losses. It must therefore be a benefit to the community, if
this element of unavoidable chance cannot be reduced as a whole,
at least to regularize it and make it exactly calculable for any
individual. In this way each may be encouraged by the more certain
prospect of receiving a reward proportionate to his efforts and
abilities. This desirable condition has in many respects been
accomplished by means of insurance.

_Insurance_ is the act of providing a guarantee of indemnity against
a financial loss that will result if an event of a specified kind
occurs. The person seeking some surety against the possible loss is
the _insured_; the person contracting to indemnify against the loss is
t