The Detroit times., 1909-01-27
20 times over in the course of single

20 times over in the course of single
year
The machinery OF the New York
stock exchange is used daily to serve
the selfish purposes of a single man.
or rather of a group of men acting as
one. Has Wall-st. succeeded in fright
ening into inactivity the people, the
governor of the state, the president
that Is and the president that is to
be?
1T Is clear that If there is today
anything evil In the conduct OF the
exchange that evil thing exists with
the consent OF the governing council
and of the exchange itself, and so it
is worse than useless to look to the
exchange for amendment. If amend
ment is TO be IL must come from the
legislatures of the states and by act
OF congress.
Most members OF the New York
stock exchange will tell you that only
about | per cent. OF the sales of stock
is for actual investment But Ii we
deduct 10 per cent from the sales OF
the week we have been considering
we find that 5,01S,400 shares were
dealt In on margin, an average OF
$50, 400 shares a day. At 10 points
margin this would mean that every
day the sum of 1885, 000 was risked
in gambling contracts on the New
York stock exchange
Take the most generous estimate
OF winning orders, one out OF four,
and figure that the unsuccessful gamb-
lers lost but half their margins, and
we find gross loss in one day of 49,
1856 500. During 1907 the winnings OF
the bank at Monte Carlo were $780,
600. Wall-st. takes more than that
from its gamblers In two and one
half days
And yet governors and legislators
and district attorneys and police and
magistrates worry over the petty
gambling Of the race track. the triy-
ial operations of Dick Garfield, or the
newsboys who shoot craps on the sand
pile.
For a man to sell what he has for
future delivery, or even to sell what
he has some reason to believe he is
going to get. may be proper specula-
ton, but to sell what he has not sim
ply for the purpose OF depressing val
ues, and so forcing real owners to
part with their property at less than
its intrinsic value, is the meanest and
most dangerous form OF gambling and
the most Injurious to the honest pub
lie.
Suggestions for Reform.
LET the law then compel him who
would sell short to describe In writing
and with particularly the thing that
ne would sell. II it is stock, let him
give the number of the certificates,
and state in whose names they are
registered, and let him also aver that
he is the rightful owner OF the stock
which he offers for sale. Punish him
II he states that which is false, and
punish also the broker who accepts
an order that does not comply with
these conditions.
Let the law then, while In general
prohibiting margin trading, also in
particular prohibit the broker from
lending any additional sum beyond
the bank loan, and insist that the
broker shall inform his customer of
the number and description of the
certificates which he has bought. the
amount of the loan and the name OF
the bank where the loan Is placed.
Make II clear also that the owner
ship OF the stock is wholly in the Gus
toner, and that IL will be grand lar
ceny for the broker to use this collat-
eral for his own advantage Such pro-
visions as these would make the pro
hibition against margin trading in
stantly effectual, and nothing short OF
this would
An institution which does more
business In a single day than most
OF our thriving corporations do in a
year should be regulated by public
authority and operated in the interest
of the state"