New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-15
Resolution Requires Daily
Detailed Reports From
Members
Would Prevent
Enemy Operations
Step to Curb Vicious Short
Selling, Is Unofficial
Explanation

Complete supervision OF Ill trdns-
actions on the New York Stock Tx
change was made possible yesterday
when the governors Of that institution
called upon all members Of the board
to supply each day detailed account
of every transaction handled during
the preceding session.
While this action was unofficially
explained as another step toward curb
ing vicious short selling or other
harmful speculative dealings in stocks,
and it was said that the measure was
aimed particularly at floor traders"
in some quarters in Wall Street the
opinion was expressed that it was also
intended to determine exactly whether
enemy selling is factor in the mar
ket. Investigations thus far have
failed to disclose definite evidence OF
enemy operations, but it is neverthe-
less possible that German interests
have worked TO depress security
values.
A third and more plausible explana-
ton of the action taken was that the
New York Stock Exchange authorities
have taken this step to forestall any
investigation that the United States
government might seek to have made
regarding stock market operations and
alien enemy transactions therein.
Resolution of the Governors
The resolution passed yesterday FOL
lows:
Resolved, That all members of the
exchange or their firms be required to
deliver before II o'clock noon every
day a statement of amounts and names
Of all stocks sold and bought in on the
also for the account of their custom
ers, stating their Names"
These requirements are in addition
to the ones imposed by the resolution
adopted November /, under which all
brokers must file each day with the
committee on business conduct
statement of stocks borrowed the day
before.
Under that ruling the officials of
the exchange were able to keep close
sold heavily short for the purpose of
depressing prices. The effect was to
put a stop TO bear raiding of the most
virulent character, the professional OPP
orators and cliOues of that class fear
ing the publicity which would have fol
lowed continuation of their operations.
Vicious short selling by professional
traders was not stopped completely in
ha haU inn hut ho Of ho
board have had many offenders on the
carpet and have made them understand
that continuation of their operations
would not BE tolerated Their warn
ings have Been effective.
Another Class Is Reached
The new resolutions reach a class
which were not Affected by the action
taken at the beginning of the month,
namely, the floor traders" These are
members Of the board who buy and
sell securities for their own account.
Commonly the floor traders even up
their commitments each day. For eX-
ample, one will buy 1000 United States
Steel common in the morning and sell
it in the afternoon, so that at the end
of the day he is neither long nor short
of the stock.
Since they evened up transactions
each day these traders did not have to
borrow stocks for delivery on short
sales, and they were therefore enabled
to continue operations of this charac-
ter without detection even after the ex-
change authorities began keeping tabs
on the borrowing of stocks. Under the
rev resolution there will be an official
record of all dealings and the authori-
ties will have definite information upon
which to base action to curtail short
selling by floor traders if that should
be deemed necessary. II was for this
purpose, according to Stock Exchange
officials, that the new resolution was
passed.
Short selling has not figured promi-
nently as a market factor during the
last two weeks, but it is felt by Of
ficials that the action taken yesterday
will serve 20 prevent any undue press
ure on the market in times Of stress.
There is no intention TO stop short SELL
ing.