Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-09-22
SHOULD KEEP UP
CASH PLAN Of
EXCHANGES
Charges Suggested by Currency
Tinkers Would Prove Serious
Mistake, Says Forbes,
By 8. c. FORBES.

your money before STOCK ENchAhge
broker VIII buy securities for YOU.
end the broker. IN turn. has TO settle
his accounts with other brokers every
Say
On the London Stock Exchange and
on the Paris Bourse there Is not a
daily settlement Of accounts, but only
ane every fortnight.
Among the varieEated recommen-
dations made to the Washington
Legislators handling the currency
problem is one that American stock
exchanges should adopt the fort
nightly settlement plan.
Our stock exchanges should do
nothing Of the kind. For these plain
reasons:
1. Daily settlements conduce TO
reduction OF risk
.. FortniEhtly settlements encour-
age venturesome speculation and en-
tall numerous IhlluIeb.
& Settlements made only BIZ
monthly entail frequent strains upon
delicate money markets. causing dis
turbance TO business
4. In times OF stress each fort
nightly settlement IL a nightmare
6. Americans are prone enough to
speculats rashly even when II IL
Gaze Of money first" II they were
given two weeks in which to gamble
they would often incur such liabili-
t1ss that they would be unable to
pay up when the day OF reckoning
came.
The existing machinery for effect
ing settlements on the New York
Stock Exchange is one OF the sound
est features Of our whole financial
organization. Leave It alone. Re
formers burning with zeal but pos
sessing zero brains are Hopping
about like newly-landed founders.
They will tire by-and-by. Then genu-
ne reform can be quietly undertaken
oy sensible people having knowledge
II what they are doing.
The Hearst papers did not mpce
words in urging the Stock Exchange
o clean house months and months
go In all fairness II should now
bs said that the Exchange authori-
les have accomplished a great deal
The main thing remaining for the
Exchange TO do is to let the public
get better acquainted with It, with
its many admirable rules, with its
now system OF ferreting out ques-
tionable practices, with its above
board methods Of doing business.
The ordinary person OF modest
means hates to enter a brokers' or a
bankers establishment. Many Offices
are too swell for the little fellow to
approach. He feels he will be laughed
~. that his puny orders will be
\ scoEned, and that he had better sneak
into some tenth-rate place--a bucket
shop as often as not, especially out
of town.
The exclusiveness OF the Stock En-
change, it's haughtiness IN the past.
Ats we are "a -private-cIub" doctrine.
all have contributed to repel the pub
lie and to bring II into disfavor
Stock Exchange houses and the pub
lie need to get together" II the
brokers really want to inspire general
confidence. There must be less aloof-
ness There must be a concerted
movement to cultivate friendly rela-
tons, to convince the public that
brokers have much in common with
themselves.
And there also must be organized
operation among commission
brokers-off as well as on the floor
OF the Exchange--to protect the pub
lie from questionable offerings OF Sc
curities. no matter how powerful and
domineering the underwriters may be-
There are a hundred and two other
things a vigorous. wide-awake, capa e
BILE association of brokers could take
up with results infinitely beneficial "a
themselves. to investors and TO the
country at large.
BY neglecting their opportunity
TO win public favor and confidence
Stock Exchange interests are stand
ing in their own light. They can now
come forward and point TO an tnstl-
tuition run on very different lines from
formerly, and If the get together"
movement were properly taken up
the ultimate results would repay ten
thousand fold all the gUu5le.
The task is not one for amateurs
St is not one for politicians to force
But il is one that the brokers should
undertake for their own sake and for
the sake of their successors.