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.
Bv 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 Il, 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-
velopjng 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
monte machinery of the country. Sem
atar Burton is expected to take
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 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. s
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 DELHI
erations of Congress. This report.
while recognizing faults in the New
York stock exchange, defended 1t
broadly and made specific recommen-
cations 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 Federal law.
1t agreed with stock exchange mem
bers that more effective regulate Of
the 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
mlnlmu UNI MARIN to be accepted by
brokers be made 20 per cent 1t also
agreed with stock exchange defend
ers that the exchange tends to sta
olllze prices rather than to disturb
them, and tlat it would be a mistake
TO attempt to bar the general public
from speculation, bNcause a "profes-
SONAR market is more subject to
manipulation than a market in when
the entire country participates
This report, made after many
months of careful investigation, to-
gether with equally careful studies
made by English and German com
mlttees of stock exchange practices
abroad will be the large conservative
'orce on which advocates of the stock
exchange will depend.
No Administration Bill.
1t is now indicated that the Admin
-SiFa'ion will not attempt, to draft
'"I to be handled by Congress as an
administration measure. This deci-
SION mas been reached, it Is undet-
S'o2a, because the kind of legislation
r"'SA should be enacted can not be
's''''nned without lengthy discus
. s''N ana because the Administered ton
lo'S not wish to be placed in the at
5''uoe OF special pleader against an
.Ds.''uNon in which are listed over
'-o y"N0o9,000 worth of securities.
As a result, a half dozen or more
, "a S1res viii be presented, and from
n,a ,' ether hopeless disagreement
''' result as was the case when COT
1u'ures legislation was attempted
Su''hs he tariff discussion, or a corn
,s'n'Se and composite bill will be
wing to the Democratic prepon-
/ 49, '''ge In the South it is probably
49,. southern members will devote
AZ 1''ehlIon primarily to cotton
""nse legislation. Senator Cum
| r' WIN propose a bill covering not
y ''o4H Exchange transactions but
r., eoative activities in grain,
visions and cotton.