Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-10-20
URGE GOVERNMENT
REGULATION OF NEW
YORK STOCK MARKET
Senators Poindexter and
Shafroth and George w.
Perkins Say Exchange Su-
pervision Is a Necessity.

interests we'll versed in finance today
expressed strongly their belief that be-
fore the New York Stock Exchange shall
be formally reopened for active trading
some scheme of regulatlon-either Fed
erai or state-should be adopted covering
its operations.
George w. Perkins, in New York, Is
sued statement in which he points out
that inasmuch as the Stock Exchange is
an international market and a necessity,
1t should be regulated by law. He pre-
fers Federal regulation. but IL this Is
not to be had he advises State control.
In Washington Senator Miles Poindex-
ter declared that tremendous opportu-
nifty 10 inspire the public with confidence
and take q step in the direction Of re-
storing normal financial conditions would
be for the New York Stock Exchange
to submit voluntarily to "some form of
governmental regulation" before reopen
ing.
While declaring 1t was highly desirable
that some form of governmental regula-
tion should be imposed on the exchange
before reopening, Senator Shaffroth, one
of the Senators on the Banking Commit
tee who stood by Senator Owen in his
efforts to have passed last winter a bill
for the regulation of stock exchanges.
admitted today that there was no imme-
diate prospect of national legislation.
THE PERKINS STATEMENT.
"The Stock Exchange has ceased to be
d private or even a national concern"
said Perkins. 1T Is international, the
great market of the world. The attacks
made upon 1t in recent years have shaken
public confidence and seriously injured
business. The only way to restore that
confidence is to place the exchange under
control. Now is the time to do it and
steps towards that end should be taken
Immediately.
Personally 1 would like to see it under
Federal supervision, but If we are not
ready to go that far the State should do
1t. In place Of this being handicap to
the exchange 1t would be great benefit
and a distinct advantage and protection
to purchasers OF securities.
'As for any talk about the Stock Ex-
change not being necessity, because
we have got along for a couple of months
without it, that is sheer nonsense The
Stock Exchange is as much a necessity
either-but how would we live?"
WHAT SENATOR PoINDExTER
THINKS
II believe that the New York Stock
Exchange should be regulated by the Ma
tional Government" said Senator PoIn-
dexter, but, of course, it will be i'm
possible for Congress to enact any Iegis-
lation in the immediate future looking
toward the regulation of stock exchanges
Adjournment is upon us and the next
session is the short one in which we
Will not have much more than enough
time to put thorough the appropriation |
bills
II do not know whether 1t would be
practicable for the State of New York |
to put into effect any scheme of Govern |
mental regulation before the time for
reopenng the exchange comes or not.
but certain some such regulation should |
be had
I'm the event that It is impossible to
get through any legislation, either State
Or Federal, the Stock Exchange mem
oers should show to the public their de-
sire to protect everybody from the sus
plclon OF double-dealing to offer volun-
.arily to permit such regulation without
any law being passed compelling it"
SENATOR sHAFFROTH's VIEWS
Il think something ought to be done by
The state Of New York" said Senator
5haffroth. There is intense opposition
n Congress TO any Federal regulation,
1ut there could not be the same opposition
o regulation by the State of New York.
But I am not sure that 1t would be well
o rush through any legislation in the
Sew York Legislature. Measures hurried
trough are usually so full OF holes as
o be worthless.
Perhaps the ideal situation would be
or the New York Stock Exchange gov
rnors 10 submit voluntarily TO some form
f regulation"
COMMERCE COMMISSION ACTS