The new South-news., 1908-05-09


| material fact The liability IL not
Cancelled even II the prospectus shows
that It was made BY . third party
Any one issuing It II liable for dam,
ages 10 every purchaser thereafter.
No Transaction may take place on
the bourse except In bonds or stocks
that have been regularly admitted
And since all transactions are restricts
I'd to the bourse. the whole scope o(
German stock speculation 10 brought
under governmental control.
The Registry.
Provision ID made for a Bourse Reg
istry In which the brokers shall enroll
and pay a small annual fee for ,hs
privilege. There IL no purchase and
sale Of seats as on the New York
Stock Exchange. and the privilege Of
trading on the bourse. which must be
Tlpsyed annually, has no saiabhs
valu&. -
Those who register are iegslixed
stock dealers. Subject to the prohibit
tion Of gambling in the products Of the
soil and Industrial and mining shares.
they may do what they please pro-
vided they do not infringe on the rules
laid down by the state commission
Only registered brokers may speculate
In stocka
II any one who has not registered
specululates. the party with whom he
specalatss takes the risk OF repudia-
tioo. because NO stock spsculations ex.
opt between registered brokers are en-
forcoable 1t Law. Tue German policy
was 70 prevent merchants. business
men and others from speculating by
requiring them to register ~ stock
dealers or to make their transactions
unenforceable. Thus Z stock broker
having Z claim on account Of Z bourss
transaction against anybody who had
not registered could collect nothing by
suit In court. No legal obligations
aAiss and Ill secret-asreemeut debss
srs void except In the CASE Of rsGint-
cred parties. This Is somewhat sim
liar to the New York law against
gambling house keeperx Neither may
resistered brokers buy and sell for
themselves except they announce the
fact.
Any private investor may buy stock
Of 4 registered broker. pay or II and
take II away. But II the broker lets
him deal on margin II It At the bro
kers risk.
All prices are nxed by the Govern
Ing Committee through ofncial quota
tion brokers" who must not have any
other business. It - the duty Of these
brokers to prevent price fluctuations
by means OF wash sales or balance
sales or other devices TO prevent =
faithful statement Of market values.
The prices ~ nxed by the committee
kssp : Iddiiy 30Sruss 5s III m. rss.ss-
actions, WhisAsis - hefinspected hy IN
oovorning Ccmmitteo. fs''r*
No Tleks~s; "Tlps~ Z Crime.
For any broker to give false advice
10 Z crime The stock ticker 10 pro-
hibited. No prices are given out ex-
cept such ~ the Governing Committee
announce, and the publication OF
prices. quotations and eales II con-
trolied by them. This II . blow NJ
what in the United States arc known
- the market letters Of brokers and
their solicitations to customers.
While this law has continued to
meet with the support Of the Agrsri-
ans, the Centre and Z part OF the Con-
servattve party In the Reichstas repre-
ssnting Industrial neighborhoods. =
large element, and particularly the
bankers and brokers Of the cities where
the bourses are located. have been
sesllng its amendment. They claim
that It drives speculation to Paris.
London and Amsterdam and depSives
then Of business and proAts. The
Prussian Minister OF Commerce. Ds1-
bsuck, proposed last spring several
amendments. The main objection 10
the old law was the Bourse Register.
under which spectators In stocks often
repudiaAsd their losses on the ground
that ttsy had not registered ~ stock
gamblers. Also many business men
Who liked to take m occasional dyer
in stocks had dimcultx n~ zelnS 20
| ui{bcyt,IaF' 'ss--'-y Inc Register had
~ He&f ofbranding . man - stock
specula<or and thereby affsctns his
othtf business.
Propessd Amendments.
The main concession that the bro
kers asked Was the abolition OF tho
oDclal Register 20 that anybody
could gamble in stocks without having
to advertise the fact. and % that los
~ could BE- collected from others
than registered brokers. An exception
70 The prohibition of grain futures u
also PROPOSED TO b. made 70 land
ownsrs and farmers and grain usrth-
ants to the extent Of their annual busi-
nooA
Although these amendments Do NOT
greatly change the law ~ hrst passed,
| ~ ere regarded - letting down the
bofs, and the mas Of the Agrar1an
and Conservative parties are opposed
| 70 them o6 tar they have been dis
cuno0d extAndyejy In the Re1chptag,