The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-02-24

by banks and trust companies, par
ticularly those located in the vicin-
ity Of Wall Street. My experience
is that New York bankers know how
to look after No. very we'll. When
financial propositions, particularly
promotions, are brought to them
they they usually insist upon terms
which strike bargainers as very stiff.
But In their relations with their
regular depositors and customers,
dishonesty is conspicuous by it's abb
sence. Broadly speaking. the pub
! lie can feel absolutely safe in doing
business with any established bank
or trust company In the city.
On the Consolidated Stock Exchange
and the New York Curb Market AS
ISOLATION there are also far more
fortunately, there are a few black
sheep associated with those institu-
| tions, and when a broker is bad, he
can be, and usually is very. very
bad. The exposures now being made
I regarding the bucketing OF orders
for the buying and selling of stocks
do not constitute pleasant reading.
Moreover, there doubtless will be
further revelations now that the
criminal authorities have launched
an aggressive campaign.
The INSCRIPTIONS operations Of
dishonest BROKERS have peen Iacil.
ILated in various directions. Ger
tam advertising agencies nave not
been at ali careful TO inquire into
| the character OF those whose ad
vertisemenLs they have put out.
Certain newspapers, too, have made
no attempt to exercise Judgment
with n view 10 distinguishing oe-
tween legitimate houses and lille
| gIllmate ones. 1t is omInon COS
sip along Wall Streets thorough
fares that ertain finanial writers
have not been above accepting
| financial favors to get the securi-
ties issued ny takers ravorably com
mented on in newspaper columns.
Nothing could be more wholesome
than what II now taking place in
the way of smoking out the pirates
who infest the Wall Street district.
Happily. the New York Stock Ex-
change, the Consolidated Stock Ex-
change and the Curb Market Asso-
citation are all in sympathy with
This movement and are lending the
authorities every possible co-opera-
ton. The more thorough the house
cleaning at this time the better it
will be for both Wall Street and
the country at large.
Let me repeat, however. that
there is no occasion whatsoever Cor
suspecting that every Wall Street
house is crooked. Nor is there the
slightest reaSap for fearing whole
sale failures among reputable brok-
erage firms. The concerns that are
being most severely hit at present
are those that were bucketing their
| orders: that is to say. when they
received orders TO buy stocks they
didn't buy them, and now that the
market has advanced so much these
bucketshops have not the means
| to purchase the securities when
customers demand them.
All through the upheaval which
followed the bursting of the war
boom, the absence of Stock Elk
change failures has been truly re-
markable. The percentage of fail
ures among legitimate brokers has
been distinctly less than among
merchants and other classes of bust
ness. So-called "commercial failures
have lately been occurring at the
rate OF more than 100 every
bushes day. There have been
but two Stock Exchange fail.
ures of any Importance during re.
cent months. The failures that are
now taking place among brokers
not members of the Stock Elk.
rchange have, generally speaking,
been brought about by bucketing.
No. the percentage of honesty
in Wall Street is quite as high as
1t is anywhere else in the country.
Wall Streets unpopularity Is due
chiefly to the fact that 30 many
people speculate in the stock mar.
ket who have no business whatever
to speculate. And when they lose,
they do not blame themselves, but
berate wall Street" The ordinary
citizen. possessing no special knowl.
edge OF finance or investments.
should not speculate. Let him in.
| vest i'm hiRh-grade securities