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
In Behalf Of Speculation as Real
Benefit to Business-Hughes
Report Gives Valuable Data.
Ry 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 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-
veloping a fighting spirit of conserv-
atism in Congress which will defend
the stock exchange as necessary
and much abused part Of the big eco
homie machinery Of the country. Sen
ator Burton Is expected to take
heading 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 a barometer for
business conditions and that the
country might save itself from periods
of money stringency If 1t 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-
ADMINISTRATION in New York is expect
ed to play large part in the DELHI
srations Of Congress. This report.
while recognizing faults in the New
York stock exchange. defended II
broadly and made specific recommen-
Nations 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 vtock 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 .unde.
state or Federal law. 1t also pro-
tested against the effort to prohibit
Trading on margins, although 1t made
an earnest recommendation that the
minimum marin to be accepted by
brokers be made 90 per cent. 1t also
agreed with stock exchange DEFEND
erS mat the exchange tends to sta
Dlllze prices rather than to disturb
pem- and tIat 1t would be a mistake
= attempt 70 bar the general public
from speculation, bA2ause a "profes-
fsiohaI market is more subject to
manipulation than a market in which
the entire country participates.
Ims report made after many
months Of careful investigation, to-
gether with equally careful studies
made by English and German com
Rllttees Of stock exchange practices
abroad will be the large conservative
'orce on which advocates of the stock
exchange will depend.
NO nistration Bill.
y II is now Indicated that the Admin
AVIATION Will not attempt to draft
OH TO be handled by Congress as an
administration measure. This deci-
s.'h mas been reached, it is undet-
STOOD because the kind of legislation
winch should be enacted can not be
determined without lengthy discus
s'"" ana because the Administration
ooes not visa to be placed In the at
'tl'ude OF special pleader against an
ms tuition in which are listed over
SzooO0.Ooo,oo0 worth of securities
AS result half doze,, or more
measures vii. be presented, and from
tH ', either hopeless disagreement
VIII result, as was the case when CO..
'u'uEes legislation was attempted
curing the tariff discussion. or a corn.
promise and composite bill will be
drafted. ''t' "4il oe
wing 10 the Democratic prepon-
uelahce in the South it is probablv
- ". southern members will devote
'netf attention primarily to cotton
-. .l..-al'se legislation. Senator Cum
MINIS VIII propose a bill covering NOT
o,.1y STOCK Exchange transactions bnt
a.so speculative activities in grain
provisions and cotton. e''"