New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-30
ENGLISH STOCKS SAFER
Wall Street Editor Tells Advan-
tages Buyer Enjoys Abroad.
DEFENDS "SHORT" SELLING
MIR. Hamilton Flags and Praises
New York Exchange at Y.
M. G. A. Finance Forum.

Nhic cltic.S.ng The critics Of the New
YORK sto,N Exchange before the Finance
I Forum Of tn. West Side Young Mons
! Christian Association last night. William
/ Peter Hamilton. edio. Of Tn, Wall
Street journal nevertheless revealed sev-
era. larse kinks IA the armor Of that for
, midable institution which he had discoy-
cred during "a LONG life Of close study ot
us WAYS. His suggestions for s,raightrn-
/ ing out these kinks were received with
! enthusiasm by tie interested audience
! The reform which appealed TO him as
! the most important ne had 10 offer vas
/ that the Stock Exchange. failing action
! by the federal government should make
! rules for the admission OF securities for
| quotation alrroXimating 10 the British
! Companies acts. The American system. he
! said. checked the activities Of Swind'Nc
I concerns hy DENYING to them the use Of
! the mails after they had robbed many
! thousands d! people. InGG IN. English
! stem they could not even start. Tor
there every director and official OF new
/ concern had to swear before the In'ano
! Revenue Department TO every detail Of
| the business thus becoming criminaIY
and financially liable for the results Of
| any mi>s;atcmcnL
Mr.. Hamilton continued in part:
We have no monopoly 81 foolish people
I ton. But a. any rate the buyer of stocks
| iu England Las only himself 10 blame i
! lc falls 10 understand the true character
, OF what he y buying
I % = ID. g. iCT - g 30
I Consolidated Stock Exchange ~ New
] York. that IN several instances its gov
, cruTelt has been more IroEressN" and
farsightei than that OF its wealthy
, uoigAbor. NO blocks M on the other side
/ OF Broad street.
Among tho other reforms which Nj
/ Hamilton suggested was one advanced
/ 10y j. Edward Simmons. former president
! Of he exchange. who recommended that
] the exchange should have as president a
man Of national reputation. drawing a
SALARY equal TO that OF the president Of
any great corporation. VINO should devote
all his time to his duties.
Another suggestion thai Tie exchange
I should form an insurance fund To guar
antee the public against its own mem
herS involved the reason Why The public
I had everything 10 lose and nothing TO
| gain by incorporating the exchange. Nj.
Hamilton said. Now the exchange cou'l
DO anything IL pleased TO a member. but
if Il was incorporated a rremium would
bc put upon sharp practice through the
lit cation into which disgruntled members
would plunge II.
Taking up the cudsels for the Stock
! EXCHANGE. Nj. Hamilton declared taat
margin speculation was an essential part
OF the business OF every exchange and
that II differed in no way from the dealer
IN Washington Market who sold forty
dozen quail for banquet when he didn't
have a single quail in his store Re
continued:
In discussing the mora lty Q. short SELF
ing and margin trading. remember tnai
il was once considered immoral aud
against public policy to accept inierest
OF capital s. all. tsGrv laws have al
WAYS been ineffective in regulating inief-
! est rates. because lie lcnGCY and tAe
borrower are both interested IN Ignoring
the law. This is why tHe call money rate
attsius spectacular figures in Will Street
and WHY no usury statutes would pre-
vent II from doing 30.
But one other remedy. perhaps the sill
lest piece OF quackery that the discus
sion has produced Is the proposal that
Congress should coerCe The Stock IA
change by denying IL t4s privilege OF IN"
mails The Stock Exchange itself does
not use the malls II uses the telephone.
It's members use the malls. and II is seri-
ouAly proposed 70 tell seven hundred
great banking houses. responsible for
hall the commerce Of the country, each
of whom happens 70 nump"r member
of the Stock Exchange among IT, part
ners that they cannot carry on their
! business.
m. result would be such panic a.
was never seen ia history. Milhons OF
workers all over the country would be
automatically thrown out of employment,
while tho shock TO our credit abroad
would he 50 serious that the immense
| volume Of securities issued by us ahn
held in fo-cirn countries would be throw
upon our hards at q time when we would
I he utterly helpless 10 take care OF II.