Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-11-02
ACTION IS AIMED
AT SHORT SELLING
New York Stock Exchange Gov
erning Committee Takes Steps
to Minimize Stock Borrowing.
WANTS TO FIND OUT SOURCE
Would Determine Whether Ger
man Interests Are in Propa-
ganda to Create Pessinism.
WANTS TO FIND OUT SOURCE
my Associated pr,sal

NEW YORK. November Measures
to prevent vicious" short selling In
the stock market. attributed in some
quarters to German interests as part
Of an organized propaganda 20 create
pessimism. were taken to-day by the
board of governors OF the Stock Ex-
change.
The action comes as the elimination
OF protractcd decline in market
quotations. recently OF extreme vio-
lence, for which short selling. whether
actually from German sources or from
unscrupulous traders taking advantage
OF conditions. has been held in a large
measure responsible.
To-day. with so-calied bear" drives
of this nature In evidence. stocks tum-
bled 3 to 10 points. At the close OF
the market the BOARD OF governors an
nounced that resolution had been
adopted requiring all exchange mem
bers to furnish at noon every day. for
the inspection of the committee on
business conduct. complete details re-
gardinG stocks borrowed and loaned.
or borrowed for customers. including
names. Stock borrowing being the
basis of short selling. the committee
will be thus enabled to determine
whether future transactions on the
short side are Of legitimate character.
DEPRESSED BY SELLING
FROM GERMAN INTERESTS
The board had no other Official state
men; to make, but a spokesman for
the board iutimated that the market
had been depressed by vicious selling
or selling from German interests" He
said that there was no intention to
place ban upon legitimate short sell
ing. but that the committee was in
vested with full authority to proceed
against any member whose operations
may be open to criticism. which might
go as far as the publication of the
names Of the offenders.
The fall in stocks began about three
months ago. but the severest breaks
have occurred since the announcement
of the Italian revcrses a few days ago.
These declines have carried stocks
down in many instances to lowest
levels In from five to twenty years
1t was pointed out that as the New
York Stock Exchange now is the fore
most securities market in the world.
the depression Of stocks would be an
object which German purpose would
naturally seek to accomplish.
MUST SUDMIT LIST TO
EXCHANGE COMMITTEE
Members of the exchange will here
atter he required TO supply. for the IN
spection OF the business conduct COM
mittee OF the exchange. lists and
amounts of stock borrowed or loaned
by thtn or borrowed for customers.
stock borrowing being the basis OF
short selling.
The action comes as elimination OF
recent severe declines in the stock
market, which to-day carried prices
down to lowest levels OF years. and
for which market observers have held
short selling to BE- partially responsible.
According TO one of the governors
of the exchange, tho procedure adopted
to-day will enable tn, embargo au-
thorities to determine the source Of
the selling. ard whether it comes from
German interests whether it is Of
vicious character"
There was no intention, said the
spok csman to put ban OH short SELL
ing OF n Legitimate transaction. Where
found 20 be vicious" he said the
names Of the sellers would be pub
lishcd. if such d step was found neces-
sary to stop the practice.
He added that the Stock Exchange
was working in complete harmony
with the government"