Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-11-16
Regulation Of Exchanges Due To
Be Taken Up as Soon as Money
Gil 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.
BY JONATHAN WINFIELD.

by JSiNN F1AN 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 1t 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 its
cousins, the grain. provision and cot
exchanges, but there is rapidly de-
ysloplng a fighting spirit of conserv-
atism in Congress which will defend
the stock exchange as a necessary
snd much abused part of the big eco
nomic machinery of the country. SEN
ator Burton is expected to take a
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.
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 it
broadly and made specific recommen-
dations 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 tn
compel the stock exchange to in
corporate under State {" Federal law.
1t agreed with stock exchange mem
bers that more effective regulat ton 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 It made
an earnest recommendation that the
minimum 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
billie prices rather than to disturb
them. and that it would be a mistake
to attempt to bar the general public
from speculation, bNcause a "profes-
sonal' market ia more subject to
manipulation than a market in which
the entire country participates.
This report, made after many
months Of careful investigation, to-
sether with equally careful studies
made by English and German COM
mittees Of stock exchange practices
abroad will be the large conservative
force on which advocates Of the stock
exchange viii depend.
~ FNA'tiIlloATdIIVU Dill
It is now indicated that the Admin
istration will not attempt to draft a
Dill to be handled by Congress as an
administration measure. This deci-
sion has been reached, it is under
STOOD, because the kind Of legislation
which should be enacted can not be
determined without lengthy discus
sion and because the Administration
ooes not wish to be placed in the at
utude Of special pleader against an
institution in which are listed over
3zooVO, 900 worth Of securities.
AS result, half dozen or more
pleasures will be presented, and from
item either hopeless disagreement
Will result as was the case when cot
L futures legislation was attempted
curing the tariff discussion, or a corn
promise and composite bill will be
drafted.
owing 10 the Democratic prepon-
oeFance in the South it is probab bly,
maj Southern members will devote
'"elr attention primarily to cotton
eAensnge legislation. Senator Cum
nuns VIII propose a bill covering not
'l'y stock Exchange transactions bat
.' speculative activities in grain.
provisions and cotton.