New-York tribune., 1908-09-29
SPECULATIVE ABUSES.

The prompt punishment by the Stock E1-
change of the firm of spectators whose WIZ
trading caused IL . sensation on the market a
month ago is at least partial answer TO the
advocates of government control or regulation
of the exchanges The authorities of the STOCK
Exchange have acted all the more swiftly De
cause of that Independence Of legal restraints 10
which some critics are accustomed TO point as
a danger and an abuse. The case has been in
yestigated by 4 committee of the highest class.
The offenders have been severely dealt with,
and that is the end of it. There is no appeal.
If there were government regulation, an eX-
pulsion or a suspension could be taken into the
courts and there fought all the way up, perhaps
to the Supreme Court of the United states.
Discipline would have been dilatory if ever
accomplished. 1t should therefore be conceded
b. those who complain of the large powers anc
independent position of the Stock Exchange
that when that authority and independence are
properly exercised they are prompt and service
able.
What is needed is more of the same spirit
which was shown in the Brown case. The best
men in the Stock Exchange know what evils
are connected with speculation and they know
how best to deal with them. They know how
to stop those things of which there Is most
public complaint. or at least how to minimize
them. They know how 10 check tendencies ana
end customs with which sober critics or eX-
changes who appreciate the necessity ana value
of centres of speculation find most fault. Trey
understand how 10 do these things infinitely
better than some blundering legislative commit
tee. whose only equipment for it's task may be
its prejudice ever can. and they should address
themselves to the reform before it is undertaken
by outsiders without experience and with only
such information as may be gathered at sensa-
tiunal hearings. The Tribune has no disposi-
ton to join in the growing chorus of assailants
of stock and grain trading. but it recognizes
that there are evils in the conduct of specu'a-
tion. and ii believes that those evils can be best
rooted out by the exchange members themselves.
They know. better than any legislative inyesi-
eating committee ever will how most effectively
To put an end to wash sales and matched
orders" and all other fictitious transactions
aiming to rig the market in the interests Cf
professional stock gamblers An exchange that
is registering fictitious prices is not serving the
useful purpose 10 trade which n speculative
market should serve. And If is inviting attacks
and arousing public prejudice. II can and ii
should remove so far as possible. any plausible
excuse for this prejudice. 1T can. at least"
as THE Wall Street Journal" said recently
remove such valid causes for complaint rs can
''be removed without destroying the whole or
f.ganization." 1t reduce the amount of
dangerous gambling and still preserve the free
dom of its market"
The members of the exchange themselves
with their present freedom from arbitrary gov
ernmental restraint and their exact knowledge
of what the speculative abuses which cause
the most public complaint, do all this l. II
is left To some Legislative committee the result
will probably be similar 10 that witnessed 10,
Germany, where legislators, with little better
guidance than their agrarian prejudices, sought
to end the evils OF speculation The Legislation
which ensued WAS confessed after a number of