James Clark McReynolds

“ For the purpose of this rule a dealer in securities is a merchant of securities, whether an individual, partnership, or corporation, with an established place of business, regularly engaged in the purchase of securities and their resale to customers; that is, one who as a merchant buys securities and sells them to customers with a view to the gains and profits that may be derived therefrom. ”

“ Helvering, Commissioner (C.C.A.) 77 F. (2d) 323, Hammitt v. Commissioner (C.C.A.) 79 F. (2d) 494, and Vaughan v. Commissioner, supra, are in harmony with our conclusion.
We find no adequate reason for disturbing the challenged judgment, and it is affirmed. ”

“ Need of Inventories.-In order to reflect the net income correctly, inventories at the beginning and end of each year are necessary in every case in which the production, purchase, or sale of merchandise is an income-producing factor. * * *
'Art. 105. Inventories by dealers in securities.-A dealer in securities, who in his books of account regularly inventories unsold securities on hand either-
(a) At cost ”