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.
BY 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-
veloping a fighting spirit of conserv-
atism in Congress which will defend
the stock exchange as a necessary
and 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 a barometer for
business conditions and that the
country might cave 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 adj
ministration in New York is expect
ed to play a large part in the delib-
erations of Congress. This report.
while recognizing faults in the New
York stock exchange, defended 1t
broadly and made specific recommen-
dations against many proposals II 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 e Federal law.
1t agreed with stock exchange mem
hers 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 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 defeni-
erS that the exchange tends to sta
DiliZe prices rather than to disturb
them, and that it would be a mistake
10 attempt to bar the general public
from speculation, bNcause a "profes-
sionar market is more subject to
manipulation than a market in whicn
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
mlttees of stock exchange practices
abroad Will be the large conservative
'orce on which advocates of the stock
exchange will depend
No Administration Bill.
II is now Indicated that the Admin
straton will not attempt to draft a
oil! to be handled by Congress as an
administration measure. This deci-
sion mas been reached, 1t is under-
stood, because the kind of legislation
"hlcA should be enacted can not be
determined without lengthy discus
SION and because the Administration
ooes not wish to be placed in the at
"luoe of special pleader against an
institution in which are listed over
Ho,Oo0,O00,O00 worth of securities.
AS result, half dozen or more
measures will be presented, and from
mem either hopeless disagreement
VIII result as was the case when COT
j futures legislation was attempted
uuring the tariff discussion, or a corn
promise and composite bill will be
drafted
owing to the Democratic prepon-
Ierance in the South it is probably
'"7I southern members will devote
'"elr attention primarily to cotton
'''hange legislation. Senator Cum
-''nS viii propose a bill covering not
',.'N stock Exchange transactions but
a shecu'atiye activities in grain.
: provisions and cotton.