The Washington herald., 1913-02-03
Sulzer and the Stock Exchange.

Gov. Sulzer approaches the question
of Stock Exchange reform in the right
spirit. In his special message to the
Legislature, he makes no appeal to
popular prejudice against Wall Street.
His message carries no menace TO legiti-
mate business. The Governor has
handled a big subject in a big way.
Three years ago when the Hughes
Commission made its report it was ex-
pcctcd that the New York Stock En-
change would hasten TO carry into cf-
feet the recommendations presented.
The report said:
This committee in rcfraining from
advising the Incorporation of the cx-
change does so in the expectation that
the exchange will in the future take
full advantage of the powers conferred
upon it by its voluntary organization
and will he active in preventing wrong
doing such as has occurred in the past.
Then VIC believe there will he no scri-
Gus criticism Of the fact that i is not
incorporated
If, however. wrone-doiug recurs. and
it should appear to the public at large
that the exchange has been dcrclict in
cNcrting its powers and authority to
prevent it. VIC believe that the public
will insist upon the incorporation of the
exchange and its subJection TO State
authority and supervision.
Though this report was dated june
!. 1900. the Stock Exchange has done
nothing 10 reform itself. 1t has car
ried out no important recommendation
made by the commission. Even so
obvious reform to minimize gambling,
as substituting a 20 per cent margin
in place of i 10 per cent margin, has
been treated with silent contempt be-
cause it would lessen reckless trading
and diminish the profits OF the brokers
The Governor says in his message:
Recently a committee OF the House
of Representatives has taken cognizance
of the conditions. as matters which COIL
Ccrncd the whole country, and has
placed on record the testimony of some
of the governors of the exchanges. and
OF other persons. which leaves no doubt
in the minds OF men capable of judg-
ment that the exchanges have been
either incapable or unwilling to devise
measures that will effectively eradicate
the evils.
In view of these circumstances. it is
now the obvious duty of the State, itI
seems to me, to devise the remedies. If
the State ncglectS to do its plain duty
the State should find no fault if the
Federal government acts in the prem
iSeS.
This is a fair statement of the case.
Public opinion will no longer permit
the New York Stock Exchange to re-
main an irresponsible body. Either the
State must act or the Federal govern
ment will act, and the work of regula-
ton and supervision is work primarily
for the State Gov. Sulzer is asking
for no hasty legislation. Nor is he
asking for anything unreasonable. Even
incorporation he leaves TO the discretion
of the Legislature. His whole pro-
gramme. beginning with publicity, is a
programme for the protection of the
public and legitimate business; also the
Stock Exchange from the popular
wrath that inevitably must come if it
remains a vast machine for stock-j Job
bing and manipulation.
Thus far the responsibility for evil
conditions in the Stock Exchange has
rested upon the exchange itself. Hence
I'd rth the responsibility will rest upon
tff New York Legislature and the |
party.
fiood weather and shad Inauguration |
,{eek and the ball will be forgottsn.