The New York herald., 1922-11-12
GOODS ON LONG TIME
TO STABILIZE EUROPE
s. l.. Cromwell Would Be-
gin by Crediting Russia
for Steel.
REALIZES VAST RISK
Thinks Success of Initial
Test Certain to Be
Contagious.
INDUSTRIAL NEED ACUTE
President Of Stock Exchange
Also Describes War on
Bucket Shop.
INDUSTRIAL NEED ACUTE

Special Dispatch TO THE NEW YoaK HERALD
New BRUNSWICK, Nov. 11.--Declar-
ing that something practical must be
done toward supplying the raw ma
terials that Europe needs or calamity
Will oveitake the world, Seymour L..
Cromwell. president of the New York
Stock Exchange, In an address here
to-day at the charter day exercises
of Rutgers College expressed the opin-
ion that the big business institutions
OF this country can do more than the
Government to aid Europe in q prac-
tical way.
Pointing to Europe's Industrial need
for large quantities OF such commodi-
ties as steel, Mr.. Cromwell suggested
that Europe would derive much prac-
ticai benefit If this country's steel cor
porations could see their way clear to
supply steel on credit up to 100000
or thereabouts and grant the borrow.
ing countries a liberal period in which
to make payment.
THE most natural country TO try such
an experiment would be Russia" he said.
''and the type. of goods would. Of course.
be those which would foster farming In
dustry.
Success Contagious.
my idea Is that factories could be
taken over, that seed could be supplied
at nominal sums, that the people of the
district thus industrlally invaded could
be employed, and that if such an ex-
pertinent met with success II would be
contagious and many of our great cor
porations would follow suit and in time
we would find many countries in Europe
receiving aid Best of all would be the
fact that their shattered confidence
would be restored, and gradually the
confidence OF the world in Europe and
Asia's possible recovery would be foru-
fled. e., -s.@
az realize the tremendous risk OF such
an undertaking, the antagonisni that
might be displayed by foreign Govern
ments In the countries affected, but IN
these days. when practical business has
failed to meet the situation, there Is
room for the dreamer and the expert
monter. Prosperity is state of mind
as well as an economic condition. The
world needs a restoration OF confidence
and business statesmanship such as
have indicated would be a tremendous
factor In effectlng this restoration
Remove confidence and calamity results
Restore it and the impossible may come
true
Mr. Cromwell devoted most Of his adj
dress to tracing the history of the New
York Stock Exchange, In connection
u-if xtl1 hn Iacl la rod tta M q
has been proved as an essential organ
ized market, a standardizer OF values
and a means OF corrective measures In
time Of financial stringency.
Defines Responsibility.
tIe said the purpose of the Exchange
In TO provide an open market for un-
trammeled dealings In securities, and
that the responsibility of the Exchange
begins and ends when 1t has provided
the necessary mechanical trading facili-
ties and has seen to IL that both buyer
and seller get the most favorable terms
possible and that the terms Of the trade
are net promptly.
In illustration OF the extent to which
mechanical trading facilities have been
provided, Mr.. Cromwell told of a buyer
In Havana who recently ordered q pur-
chase on the floor of the New York
Stock Exchange and had a complete,
binding report of the transction in his
hands less than one minute after giving
the order.
lie said that the Exchange takes every
reasonable precauton tc insure the gen.
uineness of securities without guaran-
teeing their worth and also Is concerned
with the business conduct Of its MEM
bers.
'But tho Stock Exchange does not
have cont.o' over the operations of all
firms or individuals who sell securities"
he said. There Is little to prevent any
one from setting up In that business and
selling anything he chooses TO call a
security. Therefore, many fraudulent
investment schemes are in operation
from time to time and the public Is
often victinized.
Fights Bucket shops.
''The stock exchange Is, of course.
not responsible for these swindles, but
Is interested In suppressing them and In
the punishment OF their authors. How
to cope with fraudulent stock promoters
and with so called investment houses
which are really what are known as
bucket shops are among the important
problems confronting the exchange.
''rhe stock exchange fights this form
OF swindle by denying It's quotations TO
any one but responsible firm doing a
legitimate business. The exchange Is
enabled TO do this because IL has COM
plete control over It's quotations and
can take action whenever 1t finds that
they are being Improperly used. 1t IL
necessary for even a bucket shop 10 rep
resent that II has general market quo
tations In order to attract customers
"Tho stock exchange Is very Jealous
or the control which X exercises over
it's quotations and has consistently op-
posed attempts to pass legislat alton which
would deprive II OF such control. The
great trouble with proposed legislation
TO that end Is that In practice It would
not accomplish It's purpose but would
only harass stock exchanges and repu-