Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-11-16
Regulation Of Exchanges Due To
Be Taken Up as Soon as Money
Bill Is Out of the Way-Stocks,
-, Grain and Cotton Considered.
Senator Burton Leads the Fight
q In Behalf Of Speculation as Real
Benefit to Business--Hughes
Report Gives Valuable Data.
Nv JONATHAN 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 It 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-
velopng a fighting spirit of conserv-
etism in Congress which will defend
the stock exchange as a necessary
and much abused part of the big eco
nomic machinery Of the country. Sem
ator Burton is expected to take q
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 II 1t would fol-
low more closely the prophetic voice
Of the exchange.
Hughes Report Useful.
The report OF the commission ep-
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 to
compel the stock exchange to In
corporate under State Federal law
1t agreed with stock exchange mem
bers that more effective regulation 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 1t mads
an earnest recommendation that the
minimum marin to be accepted by
brokers be made 20 per cent. 1t also
ssgreed with stock exchange defend
ers that the exchange tends to sta
oilize prices rather than to disturb
them. and that itwould be mistake
TO attempt to bar the general public
from speculation, bNcause a "profes-
siona" market is more subject to
manipulation than a market in which
the entire country participates.
This report, made after many
months Of careful investigation, to-
eether with equally careful studies
made by English and German com
Y mittees Of stock exchange practices
abroad will be the large conservative
torce on which advocates of the stock
exchange will depend
No Administration Bill.
Ii Is now indicated that the Admin
= 'stFation will not attempt to draft a
OH to be handled by Congress as ar
] administration measure. This deci-
sion has been reached, it Is unde;-
STOOD because the kind Of Legislation
winch should be enacted can not be
determined without lengthy discus
Xoh and because the Administration
ID uoes not wish to be placed In the at
II "'uae OF special pleader against al
institution in which are listed ovei
'-000oOOO,0O0 worth Of securities.
PAS result, half dozen or more
measures will be presented, and from
''h either hopeless disagreement
." result as was the case when Cot.
futures legislation was attempted
1i"s the tariff discussion, or a corn.
noiilse and composite bill will BE-
drafted
O"lng to the Democratic prepon.
'ance IN the South it is probabl!
southern members will devot,
er attention primarily to cottoI
H0"ange legislation. Senator Cum
S VIII propose a bill covering no
,'F stock Exchange transactions bu
|M speculative activities in grain
IVA DIVISIONS and cotton.