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Show MONEY & MARKETS By James McMullin Tks Tkarm'i exclusive Observer Al Wall Strwt NEW YORK The New York atock exchange and the securities .and exchange commission are currently cur-rently engaged in a spirited fencing fenc-ing match. It looks as if the TederaT agency is gradually crowds ing Wall street into a corner. The commission has never for given President" Charles R. Gsy of the stock exchange and other financial critics for attempting to pin the market collapse on new deal regulation. For close to two months it has been working to get the exchange to make amends by writing it an official letter re-trading re-trading Mr. Gay's accusation, pledging certain reforms, and shouldering at least part of the blame Itself. The exchange has submitted a number of draft letters let-ters along thia line, but none of them has been satisfactory. Wall street leaders are In a mood to placate the 8 E C up to point, but ar most anxious not to dig a pit for themselves in the process. They ars willing to go on record as approving SEC objectives and as absolving the crash. They are even willing to change their management setup by installing a paid president and executive staff. But to date they balk flatly at pleading guilty to any degree of responsibility for the slump. The SEC, however, holds the whip hand and probably prob-ably can get what it wants in the end by turning on the pressure pres-sure at its disposal. President Roosevelt's conservative conserva-tive advisers have been strongly urging him behind the scenes to clarify his position on six questions. ques-tions. They want him to: 1. Explain just how he proposes pro-poses to balance the federal budget. J. Promise the railroads that they will get their 15 per cent freight rate increase. S. Settle the utility controversy by calling a conference of private utility leaders and representatives of federal agencies dealing with power, presided over by a forceful force-ful and impartial chairman whose j job it would be to see that the conference accomplishes something some-thing definite. j 4. Declare for law and order In labor relations with industry. 5. Outline the relief problem in specific terms. I g. State how far he is willing to go in revising the undistrib-i tited profits tax and capital rains i tax. Advocates of this program contend con-tend that such assurances would speedily cure the chill from which business is suffering and encourage encour-age it to step out again. New York insiders understand that the president is giving serious thought to these recommendatins. but frankly doubt that he cm be persuaded per-suaded to commit himf If in any terms that might be piblicly construed con-strued aa a retreat. The department a! justice Lsnt making out o w1 in its antitrust anti-trust action agairst leading oil corporations and (xecutives. Oil men are Ireathing much eier than they were when thi Wisconsin trial began. They art frankly confident that the government gov-ernment has fo far gotten nowhere no-where in Its attempts to provs huge conspiracy. The rases against seven of the forty-odd original defendants have been dismfcsed on motion of the governmest for lack of adequate evidence. Other cases i-re due to be dismissed soon for the same reason. In the end. the P. of J. probasiy will have to abandon its attempt to convict practically a whoa) industry and concentrate on a handful of defendants agsinst wham Its evidence is strongest Continued pressure agnat the dollar In foreign exchange traces to further withdrawal of British and French fund? from this coua-try coua-try especially the forn'er. j Many British speculators wbii , sold American securities in Ail- I gust and September kept the proceeds pro-ceeds here in cnh. expecting to buy in again in time to catch the rebound. Gradually they have reached the conclusion that the rebound isn't in sight, and are taking their "hot money" home to , employ it more profitably. Much I of it is going Into gold a favorite refuge of nervous capital in pe- I riods of uncertainty. i New York shsrps are worried about many phases of the current cur-rent business and financial picture, pic-ture, but the loss of gold and the decline of the dollar don't trouble them in the least. The former is rated healthv snd the latter not harmful unless it goes much fur-ther fur-ther than now seems possible. Experts estimate the cost of a new tVJOO to HO.1 house as ! about one-third direct labor and two-thirds materials On this basis, if building labor can be induced to accept a 10 per cent cut in hourly wage scales, which is certainly s maximum, the net savins in construction cost would be S 1-3 per cent. Thats hardiy luscious enough bait to attract private capita.. If the bousing program ia to succeed. m"'ial costs must come down. too. We recently reported government efforts in that direction direc-tion But the companies that suoolv msterials are marshaling im'n're'ssive statistics to prove that a -worthwhile price reduction Is passible only at .labor's expense. This is going to be a tough obstacle ob-stacle for the administration to hurdle. . . . ' New Yorkers whs have v. sited n?W Cont-ressm-n Broje Baron Vr-hln-ton of."'" hv; been ;-T.rj., d-e----tht Mr. B,r. tei h'-s it . hi Pr-'"'rs "sa'id Secretary. ! r former I employerthe late Theodore Peyser Pey-ser is a loyal Tammany Democrat Demo-crat It seems odd . that th trongly anti-Tammany congress. man should keep en of th enemy )n a key position. The answer is that th secretary knows every inch of his district and th people who live in it and he doesn't T'-.t ':r:?r!rd will be. valuable. Mr. Sir ca is a realist ia soil tics as in advertising. Copyricht 137 far The Talesrrami |