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
done to the stock exchange and it's
cousins, the grain, provision and cot
exchanges but there is rapidly de-
veloping a fighting spirit of conserv-
atism in Congress which will defend
the stock exchange as 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
its 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 APP
pointed during Governor Hughes ad-
ministration in New York is expect
ed to play large part in the DELHI
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 to
compel the stock exchange to in
corporate under State g Federal law.
It agreed with stock exchange mem
oers that more effective regulation Of
me 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 1t made
an earnest recommendation that the
minimum marlin to be accepted by
brokers' be made 20 per cent. 1t also
agreed with stock exchange defend
ers that the exchange tends to sta
olIize prices rather than to disturb
tnem. and tlat il would be a mistake
10 attempt to bar the general public
from speculation, bNcause "profes-
slonaT' market is more subject to
Manipulation than a market in when
Inc entire country participates.
lhis 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 will be the large conservative
'orce on which advocates of the stock
exchange will depend
NO Administration Bill.
II IS now indicated that the Admin
lstration will not attempt to draft a
Oil to be handled by Congress as an
administration measure This deci-
SION mas been reached. it is undec-
STOOD because the kind Of legislation
"Hien should be enacted can not be
determined without lengthy discus
SION and because the Administration
OoeS not wish to be placed in the at
'''uue Of special pleader against ain
institution in which are listed over
F-''OOV0OO,O00 worth of securities.
As result, a half dozen or more
ufeS VIII be presented, and from
mem either hopeless disagreement
''' result as was the case when cot
j futures legislation was attempted
1uflng the tariff discussion. or a corn
promise and composite bill will be
drafted.
owing to the Democratic prepon-
ue'ahee in the South it is probably
Ia. .,'a' southern members will devote
',' attention primarily to cotton
Nendnge legislation. Senator Cum
'''''S VIII propose bill covering not
--' STOCK Exchange transactions buf
49, Speculative activities in grain
S'oF'S4a'~s and cotton.