The Birmingham age-herald., 1915-10-08
UNTERMYER ON WAR STOCKS

mitigate such conditions. This latest ex ! perience will not be in vain, although thf| cost will indeed be heavy, if it arouses| public sentiment to the point of comIi polling government regulation of the stock exchange that will convert 1t into the| great legitimate and responsible security market of the country which is It's higtI and honorable function. Under govern.| ment regulation we would know from month to month. and almost from day tt| day, when necessary for public protect ton, the real basis of the published ru-| mors on which prices are being boosted We would have an open market, free froml manipulations of pools and insiders, and the small investor would have protection| against illegitimate stimulation of the| market in times of great excitement.
 We would not stop speculation. Nd law can accomplish that It is doubtful whether that should be attempted by law if it were possible. But we would havt| honest speculation. It is dishonest specu| lation, superinduced by false rumors and manipulation, that I have tried to stoIl by government regulation Laws against false rumors and manipulation cannot bt| detected unless we have the legal maj , chinery for delving into the books of theI governors of the exchange and Is not accessible to any public authority. If that machinery were now available we would at least have the means at hand to sepa-| rate the wheat from the chaff.
 The stock exchnge is a great publid agency. It is public necessity in anyl comprehensive scheme of national f1nance| It's function is quite as important aa enaf of the banks, and it is more essential that it be placed under supervision than that banks or life insurance companies| should be so placed as they are.
 If the present craze should end, ae| likely it will, and as all past experienced have perhaps we will have at leas1 learned how to protect ourselves against like future gambling debauches.
 Ours is now the only country in which tbere is no public supervision over thd stock exchange, although we are more irI need of it than all the other countries combined It is not within the possibili-| ties of such communication to explain the many reasons that render this actiorl essential to the public protection nor thd vast and far-reaching influence againsd such supervision that has thus far de1 feated legal regulation. Nor had I inj tended when answering your questions to' enlarge upon this subject, but the ques1 ton Is one so near to my heart and tdI W hich have devoted so much. of my time| and thought, and it is so closely inter- woven with matters mentioned in your| | letter that I felt 1t impossible to fairly represent my view without this explana1 | ton. 1 Tt would be a mistake to attempt i'd abolish the stock exchange. It wor9d bd 0 great public misfortune and would rel der large legitimate business and finan1 cia' enterprises impossible. What wa should strive for is to add to the use] fitness of the exchange as a public se1 crrity market by keeping it within itd proper functions. That can only be ac1
 complished through government superI vision in some form. It is bound to comi with us as in other countries. The ohlJ
 question is how long can the powerful interests delay it's coming. When 1t doe1 come it will. like other reforms that thes@ great interests are opposing. prove thd greatest possible blessing to them. Vers truly yours.
 SAMUEL UNTERMYER."