New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-19
WALL ST. DEFENDED At
REPUBLICAN LUNCHEON
NOT TO Blame if Some EmbezzIe
10 Get Funds for SpeCuIa-
ton, CIeWS Says.
OTHERS ATTACK HIS VIEW
Chairman White of Hughes
Commission Declares Press
and Nation Are Aroused and
Harmful Laws May Result.

Henry Clews, banker and the Nestor
Of the New York Stock Exchange led of
IN debate yesterday at the Republican
Club on the subject Exchanges Do
Evils Exist? II so, What Is the Remedy
Mr.. Clews maintained that even mar
Rage was lottery and that specula-
zion within reasonable limits was not
rambling The banker held Wall street
b,smeless because INSCRIPTIONS men en-
hezzIed in order 10 get money with which
n speculate. Just because some men
PLAYED golf 70 a harmful excess no sane
person would suppress such a wholesome
snort, he said.
Mr. Clews's faith in the probity Of The
Street" was shared by Miguel r de
Acuero president OF the Consolidated
Stock Exchange; @. w Neville. president
~ the Cotton Exchange, and William c.
Van Antwerp. member Of the Stock TX
change and author Of The Stock Ex-
change from Within"
Horace White, chairman, and Maurice
l. Nuhleman, secretary. Of the Hughes
commission appointed in 1909 TO inyesti-
gate the Stock Exchange. took excep-
ton to Mr.. Clews's defence Of tranSac-
lions on the exchange. They said the
board OF governors of the Stock En-
change had adopted only four Of the
twelve reforms the Hughes commission
recommended, and because they had
given no reason for noncompliance with
the other eight they said the security
exchanges were facing an aroused press
and nation. that was pretty certain 10 re-
suit IN harmful state legislation.
Would Reform from Within.
They declared they were in favor Of re-
form from within the exchange, wher-
ever possible, but the apathy Of the New
York Stock Exchange governors had
demonstrated the necessity for govern
mental supervision they said
The public asks no favors from the ex-
change" ssid Mr.. Muheinan. 1T demands
a square deal That was voiced in the re-
port OF the Hughes commission and has
been ignored either wilfully or by reason
Of inCapacity and the majority OF the
members of the exchange have remained
inert instead OF vigorously and effectively
protesting against the lowering Of their
standards. BY ignoring the sound advice
Of friendly critics the exchange deliber-
ately assumes an attitude which compels
governmental action.
Too drastic supervision, the governors
say, will strangle business. Granted. But
that carries the admission of necessity for
some regulation. Who shall say that
there is not a preponderance Of lille
Ultimate transactions on the exchange
to-day? Short selling should not be for
hidden: II should be restrained. Marginal
ratios should be made larger, publicity
should be made more drastic and periodi-
cal examination Of members books should
be enforced by the government
Speaking Of the exposure Of the Hook
Ing pool by the newspapers, Mr.. Muhle-
man said the members who failed were
expelled by the governors Of the eX-
change. The other seven or more he
continued. were slapped on the wrist for
being naughty-reprimande is the term
ueed-and allowed TO retain their seats
The governors claim that these manip-
ulauons are engineered by outsiders
whom they cannot reach. While this plea
IN the face Of facts justifes a broad
smile. # will be desirable to have the
state help them out by some legislative
provision. This state has an admirable
system Of bank control. ! hold 1t up as
model for the supervision which l have
foreshadowed."
Evil in Mania for Lawn making.
Congress needs reforming much more
than the stock Exchange, according TO Mt
Van Antwerp. After enumeratine many
nix reforms that the exchange mas
fathered in the field Of speculation, he de-
clared more evil lies In the mania 10Y