The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-04-16

supervision of speculative exchanges
was recommended tonight by w. T..
Thompson, president OF the New Or
leans cotton exchange, in an address
before the Republican Club of the
city of New York.
Mr. Thompson's subject was, How
Can the Economic Features of the
Speculative Exchanges Be Preserved
and the Ethical Evils Eliminated"
SOME REMEDIES.
In suggesting his remedies, he said:
There is no wrong in future trad
ing per Sc, nor is there any evil in a
fairly and equitably administered sys-
tenn of future trading wherein the
speculative feature is adjunctive to
the trading in the actual commodity,
and wherein the value of the specula-
tive medium is regulated by the value
of the actual commodity for which
such medium stands. On the contrary
future trading is as ETHICAL as present
trading and properly regulated sys-
tenn of forward commitments is an
indispensable factor in modern trade.
Remedial efforts therefore, should
not have for their object the abolition
of the future trading system, but
should be directed toward the codes
and rules of the exchanges wherein
the system is operated.
"The first step in the remedial en-
deavor is to bring the exchanges to
a just appreciation of their RESPONSE
bility and obligation to the public,
and the second step is to compel
fair response to this responsibility
and this obligation. 1 know Of no
effectual method by which these re-
suits may be accomplished except by
the action of the people themselves,
enforced through their strong govern
ment arm.
BOOK RULES OPPOSED.
at is not feasible or wise for con-
gress to undertake to make a book
of rules for the government of the
exchanges, but it is feasible and it
is wise and necessary that the OBJ
servance of a few plain principles of
right and wrong shall be commanded
by national legislation, and that a
special executive agency shall be
charged with the duty of seeing that
these mandates are obeyed.
81 take this stand with some trc-
pidation, but with no misgivings. The
active interference OF powerful or
ganized interests which have hither-
to enjoyed immunity from compul-
sion, involves consequences worth
serious consideration, but the far
reaching nature of the wrongs ant
the increasing discomfort and FESTIVE
ness of the millions who are touched
thereby, make wise remedial actor
Imperative"
SCOTT ATTACKS EXCHANGES
Congressman Charles F. Scott, O
Kansas, addressing the Republican
Club on the advantages and evils c
the speculative exchanges, made the
! startling statement that the estimat
ed cost to the public of these ex
changes is $1SO,OOO,OOO year.
"a very large proportion of thi
annual toll Of $4,000, OOO," he said
must be charged up to the purel
speculative end of the business of tn
exchanges That is a god deal "
money. What does the public get TO
it? Does it get as much as it woul
if this were invested every year Il
railroads, or mines, or factories, o
farms? Does it develop any of tn
nations resources? Does it emplo
any of the nations labor? Does it ad
anything to the nations food supply
Does it contribute anything to tn
sum total of the nations prosperit
or happiness? l am not charging thu
it does not do any of these things;
am simply asking II IL does!
METHODS OF BUSINESS.
AS to the methods of business
the exchanges, Mr.. Scott said
81 have heard that men sell
themselves on exchanges and bu
i from themselves in order to create
impression of great activity on IL
part of some security in the hope
deceiving some one into paying
price which is above the value of Il
thing sold. DO you suppose that
true? l have heard that men som
times use the system In vogue
your exchanges to buy all of a Civ
commodity that is offered and tn
deliberatelv hold Il off the markI