Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-11-16
Regulation of Exchanges Due To
Be Taken Up as Soon as Money
Bill Is Out Of the Way-Stocks,
Grain and Cotton Considered.
Senator Burton Leads the Fight
in Behalf of Speculation as Real
Benefit to Business-Hughes
Report Gives Valuable Data.
BY JONATHAN WINFIELD.


WASHINGTON, Nov. 15.--Stock
exchange legislation will be the meat
Of the menu projected for the next
session Of Congress. In the opinion
of many members of Congress it will
be the first large subject attacked
after currency legislation is out of
the way.
There not only is wide divergence
Of opinion respecting what should be
doSeh to the stock exchange and its
cousins the grain, provision and cot
exchanges, but there is rapidly de-
veIoping a fighting spirit of conserv-
atism in Congress which will defend
the stock exchange as a necessary
and much-abused part Of the big eco
nomic machinery of the country, Sen
ator Burton is expected to take a
leading part in the defense on the
Republican side. In past years he
has written much indicating his be-
lief that the stock exchange, despite
It's faults, acts as a barometer for
business conditions and that the
country might save itself from periods
Of money stringency if it would fol-
low more closely the prophetic voice
Of the exchange.
Hughes Report Useful
The report of the commission ap-
pointed during Governor Hughes ad-
ministration in New York is expect
ed to play a large part in the delib-
erations of Congress. This report,
while recognizing faults in the New
York stock exchange, defended it
broadly and made specific recommen-
dations against many proposals Of re-
form which are certain again to be
proposed in Congress this winter
The Hughes commission did not
look with favor upon the proposal II
compel the stock exchange to ia
corporate under State c. Federal law.
II agreed with stock exchange mem
DerS that more effective regulation Of
IN stock exchange is exercised by the
private managers or board OF govern
ors than could be exercised under
state or Federal law. 1t also pro-
tested against the effort to prohibit
trading on margins, although it made
an earnest recommendation that the
minimum mar~in to be accepted by
brokers be made 20 per cent. 1t also
agreed with stock exchange defend
ers that the exchange tends to sta
nlii1e prices rather than TO disturb
lhem and that it would be mistake
10 attempt 10 bar the general public
from speculation, BECAUSE a profess
sonal' market is more subject to
manipulation than market in which
the entire country participates.
rms report made after many
months of careful investigation, to-
sether with equally careful studies
made by English and German com
mittees Of stock exchange practices
abroad viii be the large conservative
'orce on which advocates of the stock
exchange win depend.
No Administration Bill.
It, Is now indicated that the Admin
NlTauon viii not attempt to draft
o'Ii 10 be handled by Congress as an
administration measure. This dect-
SION mas been reached, it is under-
STOOD because the kind of legislation
"n'en should be enacted can not be
determined without lengthy discus
s'0H am because the Administration
uoeS not wish to be placed in the at
,IOuue or special pleader against an
,i,slltullon in which are listed over
o'OooOVOO0O wor h Of securities.
- result, half dozen or more
measures will be presented. and from
mem either hopeless Disagreement
VII result as was the case when cot
-" futures legislation was ATTEMPTED
: - 'iIs the tariff discussion. or a corn
promise and composite bill will be
o"ing to the Democratic prepon-
ue'ahCe in the South n ia nrobo blv
- southern members will devote
,'e,r attention primarily to cotton
hse legislation. Senator Cum
'''''a VIII propose a bill covering not
o.'y stock Exchange transactions I'm,
49, speculative activities in grain
''o''sions and cotton