Show The Financial By JAMES McMULLIN Whirligig I NEW NEV YORK YORK NO Nov 13 The 13 The re refusal refusal refusal re- re of Judge Martin Martn T. T Manton of the tile federal circuit court of appeals appeals appeals ap ap- ap- ap peals to rule favorably on the plea pica of J. J Edward Jones oil oi royalty king for Cor what amounted to exemption from tram the jurisdiction of oC the securities ties tics exchange commission was wa an tes important triumph for the te latter and a blow to toVal Wall Val street right- right wingers The die hards while die while harboring harboring harboring har har- boring no great geat affection for Jones did did cherish the thc hope that his action action acton ac ac- ac- ac tion would undermine the te commissions commission's commissions commission's commissions commission's commis commis- ton sion's legal authority and thus serve their purposes without involving them in any way This Tints development has a significant significant cant bearing on the tile Meehan case If I Mike should Insist inist on challenging ing the commission by b refusing to heed its it summons for a hearing he now runs a real risk of being adjudged adjudged ad ad- I judged in contempt contempt That might land him in the which hoosegow which would be highly humiliating Some Sono half hal a dozen other time big big operators are arc reliably reported to be quaking in their boots boot for Cor fear Cear their turn tur is coming next next Charges are circulating freely in Now York that Jim Landis and his conferees have turned their backs backson on Joe Kennedys Kennedy's safe and sane polices policies policies pol pol- and are arc about to plunge Into a aspree aspree aspree ices spree of ot headline hunting that tat will wi drive everyone to cover and disrupt the tile market market The double-cross double is heatedly alleged alleged al at- since Landis publicly announced announced announced an an- only a few weeks ago that he lie contemplated no departure from the principles established by his predecessor The real situation is that the commission which commission which ion which is conceded conceded conceded con con- ceded by impartial observers to be unusual unusually fair and scrupulous for a government agency was agency was caught up tip in the sudden wave of ot administration tion ton apprehension about a runaway market and was also alo goaded into action acton by stinging criticisms of at lax enforcement enforcement Those who should know continue to be confident that tat there here will vilI wi be no interference with legitimate trading Some of the boys are certainly hard lard to please Until the Meehan business broke they were vere razzing the he da daylights out of the commission for Cor allowing all al sorts sort of oC market phena to go on under its it nose Now sow th that t it shows signs of at clamping clamping clamp- clamp ing ng down on manipulators they are arc squawking about government med med- New York bankers are keeping a avary wary vary eye eyo on the federal reserve They agree In principle that some some- thing should be done to cut down 1 mountainous excess reserves but bu butare butare are a n trifle uneasy about the tho pre pre- else formula to be employed The suggestion of Benjamin Anderson Anderson An An- derson Chase bank economist economist that tha tat the federal reserve banks should start selling government securities inspires no enthusiasm The banks arc are fearful that such sales would drive the government bond market marke down and impair the value of their own extensive investments investment in federal federal federal fed fed- eral obligations Federal reserve authorities reco recognize the force of this objection and are arc unlikely to take a chance on upsetting the tho psychological psychological PS- PS apple cart cart However they may try a milder mider variant o othe ot of the same idea reducing idea reducing federal re reserve re- re serve sere holdings of oC term short government governments gov gov- b by quietly failing to renew investments in maturing issues and tatting taking a cash payoff instead This wouldn't attract much attention and would have virtually no effect on tho the market market so so the banks wouldn't mind it but It-but but i-but but on the other hand II It i would probably make very little impression on excess reserves either Financial experts believe beleve the federal federal federal fed fed- eral reserves reserve's most useful weapon in combating Inflationary tendencies cies ces will vill wi turn out to be its it newl newly authorized and never used power to increase member bank reserve re requirement re- re That would cut down excess reserves with the tho smoothness and finality finaly of oC a guillotine guillotine but but but il it would represent too abrupt a re reversal reversal re- re versal of policy to be tried just yet yet Copyright Copyright 1935 for The Telegram I |