The Cairo bulletin. (Cairo, Ill.) 1???-1928, 1912-12-17
Congress Inquiry Unearths Old Law
to Curb Exchange
Evils. As
KNIFE TO CUT OUT CANCER
Standard Rates Of Interest for Call
Loans to Be Made a
-gss Law. 81

New York, Dec. 15.-The many
startling revelations Of the methods
of the New York Stock Exchange al
ready made by the House Committee
at Washington that is Investigating
the money trust has given re-
newed impetus to the growing popu-
lar demand for drastic legislation
that win eHcctually curb the fragrant
evils. !
The most striking suggestion thus
far made to Chairman Puja for a
remedy is that the Stock Exchange
be bron9nt under the autcoin law Of
New York. 1t has been pointed out
TO him by man seasoned in Stock
Exchange gambling that the appli-
cation OF this Old statute would
bring the pure gamblers" as they
We're described to the Pujo commit
tee the other day by Frank x.
Sturgs, face to face with the Grim
inal law whenever they should in
dulge their bent for wash sales" or
matched sales.
Only a few days ago a man was
sentenced to prison in this city for
taking part In fake auction. His
offense consisted simply in boost
iug" prices at the public auction sale.
This is what IS done by matched
sales" as testified by Mrs. Sturgis,
Harry Content and other men ex-
perienced in the ways of Stock EX-
change methods. a,
Standard Interest Rate.
1t has also been brought out in the
Investigation that a chief aid, prob
ably the strongest prop to stock eX-
change gamblers, is the lack of a law
prescribing standard rate OF in
terest for the money they borrow
from the banks that are allied with
their system Outcry and eXclama-
tion against the call loan system are
Of long standing. Witnesses have
shown that New York today is the
only financial center of the world
where this practice is in vogue.
The light thus far that has been
thrown on that evil shows that the
attack upon it must be nation wide if
ii is TO be made successful, The
Congressional committee has demon
stratcd that the evil is not local to
that vaguely defined geographical
region known as Wall street. 1t has
shown that the entire financial sys-
TEN of the country is permeated with
it,
Knife TO Cut Out Cancer.
Now that the financial doctors at
Washington have located the seat OF
the country's business cancer in Wall
street, 1t is obvious that one of the
principal reforms the Democratic ad
ministration and Congress will un-
domake and push vigorously after
they assume control of the govern
ment in March will be to eradicate,
root aud branch, this parasite that
for so many years insidiously has
been poisoning the coutnry's busi-
ness body. State legislatures have
essayed the task in vain.
The thrush OF money to Wall street
from large and small banks in every
nook and Granny Of the country is
caused, it has been shown, by the call
loan system here, and this constitutes
the basis upon which the admitted
evils of stock speculation and manip-
ulation are maintained.
The annual report of tire treasury,
issued Saturday, shows that New
York banks have been more prosper
Gus this year than ever before, thus
demonstrating in new way that the
peoples savings are flowing into
Wall street in increasing volume
every year.
More Brokers on Stand.
Washington, Dec. 16.--NeW York
Stock Exchange brokers will appear
before the House Money Trust In
yestigatng Committee tomorrow,
when hearings will be resumed, to
r give additional details of the work
inas Of the exchange, especially with
reference to the speculation which
II has been admitted is carried on to
a large extent.
Samuel Untelmyer, counsel for the
committee, is not satisfied that all de-
tails as to the operations of the ex-
change along these lines have been
developed. 1t Is his purpose to In
form the people of the country who
dabble in stocks either by way OF In
vestment or for speculation just how
the controlling influences on the
stock exchange manipulate the
market at the expense Of the out