The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1922-05-04
Thursday. May 4. 1922
THE DENlsoN BILL is NOW UP
TO THE SENATE.

49, ~'fFN -
A message to the Miner last Frida
from Congressman Burton J.. Frenc
announced that the Denison bill ha,
passed the house with some mino
changes. and that both he and Con
gresham Addison r. Smith vote,
against the bill In doing so they
probably represented the majority sen
timent in Idaho. As viewed by the
Miner, the only serious objection IL
the Denison bill is that it unjustly dis
eliminates against the stock exchanges
in cities of 100000 population or less
The bill specifies that securities listed
with stock exchanges in cities having
population of over 100000 shall be
exempt from its provisions denying the
use of the mails for the promotion of
securities which have not complied
with state blue sky" laws This
would naturally result in concentrat-
ing stock trading in few large cities.
such as New York. Chicago St Louis
Boston and others, a situation most
unfair to cities of smaller population
The theory advanced by the committee
in reporting the bill. in trying to JUS
tlfy this exception, is that the rules
and regulations governing the listing
of stocks on the exchanges in the larg
er cities are so exacting that the public
is. amply protected against fraudulent
promotions This contention is not
borne out by the history of stock ex-
change operations. As matter of
fact, the public has been reeced to a
greater extent through the promotion
of stock duly listed on the exchanges I
of the larger cities than through any
other channel. This simply shows that /
with all the steps taken for the pro-
lection of the public by these larger /
exchanges, they are occasionally inn /
posed upon just as are the exchange
in the smaller cities and that there is
no justification in discriminating
against the smaller exchanges The
public stock exchanges serve a useful
purpose III fixing prices OF securities
and in providing the means by which
the people can buy or sell and most Of
them want to do one or the other or
both. Instead of placing It's taboo up
on exchanges in the smaller cities, the
Denison bill should recognize all ex-
changes which adopt and enforce regal
lations prescribed by law governing
the listing of securities. In that man
ner the public would be protected as
effectually as it would be under the
proposal to favor the larger exchanges
Outside of this feature the Denison c
bill simply forbids the use of the mails
and other means of interstate commu-
nication for the purpose of violating
'Ne%AN bAAN shy laws GMlOIluU0ltlA w
/ number of states have enacted dras n
lie laws of this kind which have proved "a,
/ serious obstacle in the way of mar d,
,eting perfectly legitimate securities c.
rhe states have the unquestioned right be
o adopt and enforce such laws. If the tn
nails are used for marketing stock h,
hat is under the ban Of certain states p,
is certainly not the intention of the is
ederal government to play the part of ST
ccessory TO the violation of the state til
avs; but that is the position it ap- hi
ears to be in and to remedy this ap- an
ears to be the essential purpose of tn
he Denison bill co
Instead of attacking the Denison m
ill., which. with the exception of the sic
ection discriminating against stock 90
Schanges in smaller cities. seems tc ca
e morally right, efforts should be di- cit
scted toward the adoption of uniform isf
blue sky" laws by the several states to
ased upon the idea of encouraging ne
lther than discouraging legitimate sin
lterprise. 30
wa
Resolutions protesting against the pos
assage of the Denison bill by various cor
representing the mining hol
dustry in the west have gone TO such pre-
Ctremes in picturing the deplorable ella
that the effect is liable off
he the onnnsitn OF H. intended L.