Tensas gazette. [volume] (St. Joseph, La.) 1886-current, 1908-05-08
Government Commission.

Germany has had eleven years ex-
perience with the restriction and reg
ulation by law of stock-exchange and
board of trade gambling Prior to 1897
the German bourses regulated them
selves, with only minor state superv1s-
ion and without federal supervision.
Since Jan. /, 1897, all transactions in
stocks and bonds throughout the Ger
man empire have been under the pro-
visions Of the German Bourse law.
The government of Germany is some
what like that Of the United States In
being a federation of separate states.
each state having its own legislative
body and the federation having legis-
lative body somewhat like Congress;
the Reichstag corresponds roughly to
the House of Representatives and the
Bundesrat to the Senate. Germany al
so resembles the United States more
than Great Britain in that the minis
ters are not removable by the legisla-
tive bodies and are the agents OF the
executive. Emperor William is the
executive head of the German govern
ment, and also, as king Of Prussia,
of the Prussian government. The min
listers are his appointees. as the MEM
bers of the cabinet are the Presidents
appointees. AS in Great Britain, the
ministers can introduce bills and make
speeches; but, as in the United States,
they have no votes.
Fifteen Bourses.
There are fifteen bourses in Ger
many; seven are in Prussia, Berlin,
Breslau, Dusseldorf, Essen, Frankfort
on-Main, Cologne and Konigsberg; two
In Bavaria, Munich and Augsburg; two
In Saxony, Dresden and Leipzig. two In
wurtemberg, Stuttgart and Mannheim,
and two In the Hanse cities Of Bremen
and Hamburg.
Prior to the passage Of the German
Bourse law these bourses competed for
business. Generalization resulted from
competitive gambling facilities.
The first complaints against unre-
stricted bourse gambling came from
the agricultural interests which In
Germany have a large representation
in the Reichstag and form the Agrar-
ian party. In the agricultural districts
members of the German parliament
are elected in hostility to the banking
interests and pledged to legislate Tor
the farming interests.
No Gambling In Grain.
The Agrarian party came to the
conclusion that speculation in farm
products caused injury to the produc-
ers. At the time the crops were har-
vested and the farmer desired to sell,
the brokers and spectators depressed
the price by short-selling. Thus at
the time the producers sold the price
was low. After the farmers had sold
the brokers and grain spectators put
I'D prices. Every year there was pc
Rod of low prices at harvest time and
then of high prices during the other
months until the next harvest, lowering
the prices which the farmer received
and increasing the cost of food to the
consumers. :.
|
ed themselves to support a bill pro-
hibiting themselves to support, bill
prohibiting dealing in grain future;
or the selling short Of products Of the
soil.
Certain industrial interests allied
themselves with the Agrarian party
on the same grounds; that speculation
In iron, coal, ore, cloth and other fac
tory products made fortunes for spec
ulators at the expense OF the producer:
and consumers. They reasoned tina
II speculation were eliminated and thu
costly system of the middleman anf
exchanges destroyed both factory own
ers and consumers would be better
of.
Accordingly, by union in the Reich
stag of the Agrarian party and OF rep
resentatives from the coal districts ant
factory towns the Bourse law wa
passed on June %, 1896, and took effec
on Jan. 1887.
The essential feature Of this law 1
the prohibition of dealing on margin
or in futures of mining and factor,
stocks. grain or mill products. Tn
penalty of fine and Imprisonment wa
provided for any broker. Spectator o
other middleman who bought or sol
such products of the soil or the factor,
or the mine, except in the process o
distributing them.
Not content with this, the German
Ministry, at whose head was the
Prince Hohenlohe, put In force plal
to regulate all Safeguarding in Ger
many.
Government Regulation.
This law of eighty sections take
all the bourses under the supervision
the Government and appoints stat
commissioners to act with the bours
governing boards. Each governin
hoard has a committee known as
Court TO Honor, which decides all dis
putes, subject to an appeal to tn
Chamber Of Appeals, whose presider
Is chosen by the Bundesrat.
All stocks and bonds before bein
admitted to the bourse must be exam
ined by a Government committee.
prospectus must be presented. Fc
any falsity of statement the promoter
or sponsors are criminally liable. Al
plicat!ons for admission are publishes
Stocks of new corporations are admi
ted only after a balance sheet has bee