Show STOCK EXCHANGE REGULATION ALL STREET if iE it had been smart might W. W WALL vy Lave have saved itself from the thc drastic regulation regulation regula regula- tion now proposed for it Back in the thc hectic campaign da days 8 of 1932 Candid Candidate tc Roosevelt told the country what he thought was wrong with it and sketched his Ilia ideas for its reform But it paid no attention Such things had been said before before and and then forgotten The tn manipulators went right on with the their r tricks Instead of or turning from bad to good the they went from bad to worse Then Mr tr Pecora had them drop in and tell the senate investigation committee just how bad they were It probably dawned upon them then thon that there was a New Deal IDeal in election promises that promises that sometimes they may be made good That is pro probably ably why WIlY the presidential request upon congress for regulatory laws failed to stagger the men in the market A guilty conscience has often prepared an evildoer evildoer evildoer evil evil- doer for the coming coning of th the police President Roosevelt called for enactments to o destroy pernicious practices without destro destroying destroying de de- de- de the usefulness of the exchanges to legitimate business Back of the need for regulation regulation regulation reg reg- are evils very vcr cry similar to tho those thoe e which brought forth tI the e securities act In acting upon stock exchange control legislation congress congress congress con con- gress will rdo ilo well yeU if if it carefully Considers the effect of the regulation of securities sales It win will be admitted generally that because o of its stringencies it has become practically impossible bible sible to finance a new enterprise through marketing marketing marketing mar mar- issues This Nils has resulted largely from the provision that corporations their officers and directors are liable for the losses of f buyers and nd sellers of their stock if false or m misleading information is filed with the government The same provision is is writ written en into the sto stock k exchange exchange exchange ex ex- ex- ex change bill Chairman Fletcher explains that his bill is in intended nd d to make stock exchanges market marketplaces marketplaces places for investors aud and not places of resort for tb those who would woul speculate or gamble With YUh this thiB a aim n there c can cau n be no quarrel unless the regulation is so drastic that in trying to prot proe protect pro pro- t e the people against themselves it goes so 80 faq fati as to o ma make e buying and i- i selling of stocks so difficult difficult dif dif- dif dif- as to Be De pr practically r impossible One provision which mu must t rem remain in in th the bill is i th that t against pools It must be made impossible for a few insiders to manipulate tile the market t for or their own purposes and all the wool from the lambs' lambs backs Another prohibition in the l law w must be directed agai against st short selling by officers and directors of the stock o of th their i own company In line too with the idea of ot protecting the public against itself margins must be kept high enough to discourage discourage discourage age out and out speculation tion by people who cannot annot afford to speculate at all ll The he Fletcher bill provides that regulation shall haU be in the hands of f the federal tr trade d commis com com- mis mission ion Already this commis commission ion is overloaded overloaded over over- loaded with responsibilities and it may turnout turn turnout turnout out that if an additional burden is placed with it delays 1 ys in rulings will ill so hamper hamper market ark operations op op- as to stagnate all business depending upon stock exchanges Government agencies PW A and WA are c crutches helping business to stagger along for the When they go out of the ithe e picture there will be urgent need that business busi busi- ness u and industry shall have hav opportunity to finance themselves Both the securities act and the he proposed stock exchange c control act must look ook to this future It is unquestionably lary ary that there be regulation n in these fields that hat hatwill will accomplish the broad aims but the medicine prescribed for the public must not kill the patient to end his ailments |