Show i o 4 1 Bonding o of Brokers I V INVIE iN JN VIEW of the failures of numerous bucket shops a and d more than half a hundred brokerage firms firm in New York City within the past few weeks the announcement made by the secretary of Jf the Utah securities commission that not more han 10 per cent of the stock brokers doing b b business in this state have complied the law which requires them to procure a license from tl the ih commission and file a a. bond for is of c considerable importance It is explained by the secretary of the securities ties is commission that because of the material decline decline de de- de- de cline I in the stock market business toward the close of 1920 and which continued with the ope opening in of 1921 the commission decided not to strictly enforce the provisions of the law last year but let it generally be be und understood that the provision requiring brokers to take out a license and file bonds for the amount stated would be enforced nf during the current year The matter In in so far as is it affects members of df the he local stock exchange is being held in eY nce pending a decision of t the attorney genral gen- gen feral ril ral of the state on the suggestion of the board boardl l governors of the stock exchange that the law uld be enforced only In in cases of member brokers who deal in promotion stock f p The argument is made that the dues of members members mem mem- b bers- bers rs of of- the exchange comprise a a. rather heavy expense and that they are compelled t to observe stringent rules of the exchange in reference to methods m th ds of of transacting business and for these reasons reasons those who are not interested in promotion promo- promo ti tion n projects should be relieved of an extra tax xon ri the part of the state in addition to the one enforced d by the government There is no doubt that the intent of the framers of th the securities law was the greater protection of the investing public and it is possible possible possible pos pos- sible that they did not take into consideration the fact tact that Jn membership in jn an exchange which rigidly forc s sils s own own iii rules 15 a f i guaranty of f honesty Jin i ui th the dealing in stocks How However ver in view of the fact that th-at the license required by ly the securities act is a protection against illegitimate trading at fl would would- seem that the law as it now stands is wholly adequate |