The Washington herald., 1913-03-09
Issues Affecting Prosperity.


In The history Of the material de-
vcieprncnt of nations every period of
excessive industrial growth and bust
ness activity with lis cnneanIitant over
speculation In real estate. commodities,
and securities Is followed by re-
action governed In extent and dura-
ton by the intensity and activity Of The
preceding period Of development.
In the United States such periods of
reaction have been pronounced hy rca-
sun Of our representative form of gov
crnmcnt. which permits changes In our
national and State legislative bodies TO
satisfy demands for laws to correct eS-
isting conditions and control them by
new cnaCtmcr1ts
That people of this country seek leg
islati,c curc-alls was evidenced by the
granger laws" Of the H0s. following
"a period of railroad building which had
exhausted the nation financially and
commercially.
Vt the present time. when the ia
tional laws regulating large corporate
business have failed in their enforce
mcnt To stcm the tide OF reaction from
oycr>pcculatiou and husmcs, cv-
pansion. wlicl! eliminated in tic panic
Of 1907, VIC arc confronted with leg
islAtivc p'ogrAmmc. extending The
length and breadth Of the land. 10 cf-
feet The business regeneration Of TIC
country by laws calculated to regulate
practically every kind of business On
dcar"r. and more especially the busi
nos OF banking and finance.
That certain conditions calling fer
proper and well-aivised regulation have
grown Up in banking and finance dur
ing tho pas, decade will not lie denied
10y those whose business is closely &c
lated to financial affairs, but that leg
station as u"w generally proposed, tic
result Of which will be the Gripping Of
financial and banking institutions. viii
promote business stability Is incou
ccivablc
The Legislature Of New York Is 1t
present considering bills introduced for
the purpose OF regulating the affairs ot
the New York Stock Exchange. which
will. if enacted. very largely limit the
power Of that institution to protect the
interests OF the public b. urlifying the
effects of its own constitution in gov
crming tho action oi il members.
What will be the probable outcome
I ,hi, present attempt 20 stimulate H.
legislative enactment, an already jaicd
prosperity !; more OF les probicmaui-
al. but looking back to the year, fol
loving the haras,ing ot the railroads
by the Stranger Law, VIC find State
Legislatures and the government e.:
cit;c, and towns win: with each other
in measures to countcract the effect Of
ill-advi>ci laws formerly so earnestly
dc,irCl.
Should 4 rcpctiti"n - the past with
it, t4rdy regrets hc allowed to result
from the threatened legal cnactmcrts
OF to-day? Would it not he far better
that i sohcr confederation OF the al
fairs and conduct Of banking and
finance be had before ilI-adviscd lcgis-
latiun hc placed on the statutes?
Let the national government inquire
through the proper department As to
the legality under their charters Of the
participation by national bank in tho
underwriting "f bond issues; lct tho
State authorities inquire closely into
the advisability uf the trust companies
engaging in various financial under
writing schemes. then there will result
i fair understanding 0f the necessity for
intcrlockinS bank and trust company
dirCctoratcS and the recently di>cOv-
cred voting trustcc>hips The New
York Stock Exchange. the methods OF
conducting its business and governing its
members. will bear the closest scrutiny.
and fair and impartial investigation
50 conducted as to make evident the
absolute facts and true conditions
would fully allay all suspicious and
dismiss the unfoundcd charges that
general business conditions arc in any
way injured by that institution.