New Britain herald., 1914-07-08
hYS NATION NEEDS ]. |LEss PSYCHOLOGY
dhkts' Counsel Thinks Fewer New
 Laws Will Aid Prosperity.

AflAnt1c C1ty, IN. J., Juiy D. we
 re,,sA hope. about to emerge from a
 psychological depression. Our suc-
 fssful emergence is dependent on
 lany things, not the least of which
 a decrease in psychological legisla-
 On; that is: legislation for popular
 feet, las opposed to legislation di-
 lcted to a real public good. The
 nterprises of the country, of your
 Averal states, are waiting, and the
 hvestment banker is waiting
 This hope was expressed yesterday by Robert R. Reed, general counsel
 10 the Investment Bankers Associa-
 ion of America, in an address before he National Association of Supervis- prs of State Banks at its convention
 nj the -Blenheim hotel.
 lis subject was Regulation of the Business of the Investment Banker
 n the Issuance and Sale of Securi-
 ies.' !
 "The securities which the invest nent banker wishes to distribute to
 he investors of the states,' MT. Reed laid, "are the securities sold by the public utilities and industries of the states. Both the enterprises and the
 investors look to him to purchase competitively at wholesale and sell Rcompetitiyely at retail, to reach the pest market with each security, to get the needed capital for industry on the best possible terms That he can kdo and will do If the freedom of in
 erstate business is maintained. He cannot hope to do it adequately If
 hat freedom is seriously impaired
 Sees Disaster in Many Laws.
 He said that the original purpose of
 blue sky legislation had been to 4reach the "get rich quick" concern Dand expressed the view that legisla- ton confined to such concerns was kpractical and constitutional Many of the laws adopted apply to dealers in high grade investment securities. he continued, and subject the whole Ibusiness to executive control, which he declared was unconstitutional and pdisastrous on industry and invest ment
 "A relatively few constructive and democratic reforms intelligently applied" he said, would do the work intended by the mass of unin- telligent, largely constitutional statutes from which the whole coun> try is suffering. I wish to emphasize the ,vice of extending executive con- k trol by the executive or by commis- sions over the essentially private transactions and callings of the in- dividual. There are limits beyond, which the legislature may not go. either constitutionally or safely. in Interfering with the freedom of tho individual.'' s-,s T fi .s assast
 MT Reed said he believed the prop CT administrative activities of gov ernrfient can be better carried on by trained bodies divorced so far as pos sible from political influence and hold ing office for considerable term of years.
 ..The real issue today is not govern ment by commission he said. Tt is the preservation of the efficiency of such government on the one hand by confining it to the great objects of ad-
 ninistrative action and the preserva- tion of democracy on the other hand ! against the unwarranted encroach- ment of executive control over the in dividual.
 Ends Democracy, He Says. Democracy consists in the essential liberty of the individual. The privilege of running a railroad or bank or of being corporation is not a part of this liberty. It is accepted and exer- cised subject to administrative control.
 sA'But the right to buy and sell law full property to lend and borrow, is a part of individual liberty. This lib- erty may be subjected to general laws to prevent abuses. It may not, how ever, be prohibited, and it may not be subjected to the will or discretion or control of the executive. It ends, and democracy ends, where personal gov ernment begins.
 .''An amendment was recently ada ed to the trade commission bill now pending in the United States senate, ! which prohibits unfair competition without attempting to define 1t and en1Fowers the commission to issue an order prohibiting any act which it finds to be violation of the law. This order is to be enforced by the courts. s'The new crime is not unfair com petition; that is too vague and uncer- tain The crime, the only crime, is disobedience of the executive mandate. L The law, the only law, is the execu- tive mandate. The so-called law, the statute, is simply club to be wielded at will among those who come within { the broad domain covered by the term unfair competition 7
 Mr. Reed said that in his opinion this proposed legislation was "cen
 tralized, national, executive paternal- ism and It Is where We reacn the danger point.'
 Can't LegisIate. Perfection.
 "The American people believe in de-
 n1ocracy and in their constitutional safeguards, he added. ''They do not, and never will, believe In paternalism as political principle. Such a change, if it comes will come grad ualIy, and in sense unconsciously as
 thn Nf
 fort of our legislatures to solve each difficulty by the classic dictum, Let (Sboree do it. Just now the fashion
 Iof Nodd n