New-York tribune., 1922-01-29
Price Rise Merces 1922 Bcketeers Is Your Broker Hone
per cent of tho stocks that should be

cnrried.
When in doubt about broker, con-
suit your banker, who has ACCESS TO
sources Of information. Don't be sat
isticd with an equivocAd xrpl-. II the
banker informs you that tie broker
has an adequate bank balance, tell him
you are especially interested to know
something about the character and
business integrity OF the broker.
protecting the buyer of securities
against fraudulent and misbranded se-
curities, various agencies who arc now
piously wishing for better conditions
can actively aid. The Capital Issues
Committee few years ago concluded
that tho estimate that $500, 5000 a
year was being wasted in worthless
securities was an understatement:
Therefore the problem is practical"
IS we'll as morally urgent. Money
being squandered could be Of economic
use by being shunted into legitimate
channels.
Il Suggested Program
Here is simple program for meet
ing tho situation:
7--Use publicity rclontlessly. II tho
searchlight Of publicity is cast
upon questionable practices it can cor
lawyers and prosecuting attorneys.
O-Lct the lawyers. the bankers as
socations, the stock exchanges and
the other constructive forces combine
energctlcally to suggest laws that will
make "thc customer can't win" schemes
illegal, and then let US insist on an
= r1f nf nP hn
being made in this direction. Tho
Martin act, which became law in this
state last year, places tho power OF
prosecution with the Attorney General.
The law up to the present has been
dead letter, but plans are under way
for it's rigorous enforcement. The law
grants immunity to those who give
evidence to the Attorney General, and
some students Of the question think
that this 10 a mistake. Then New York
law closely resembles the Maryland
+, fraud act which has been successful.
At Washington, two bills, the Denni-
son and Vostead bills, are pending in
the House. The former is n blue-sky
measure, which, in its present form,
is opposed by the national banking as
sociations, but the form will probably
eoon be modified. The latter is a fraud
act and has tho bankers support
Q-Lct tho respectable elements in
finance become moro articulate and
assume some Of the risks necessary to
clean up the situation. Let them CO.
operate with the law enforcing agcn-
cies. and. if tho latter should fail to
do their duty, let the leaders Of finance
give publicity to the neglect arising
either from inertia or political desire
to give protection to the wicked who
may be liberal contributors.
1-Let the banks be careful not to give
letters Of accommodation to ques-
tionable brokers merely because they
have bank balances; let them refuse
the accounts Of crooked promoters and
brokers.
E-Lct those who want to be consid-
- cred virtuous and law abiding cease
to rest compiacently on their rcputa-
tions. Let them clean house If any
infuse themselves with a progressive,
critical spirit.
E-Education in the press and else
where designed to take tho mys-
terry out Of finance; to instruct the Sc
curity buying public in the fundamental
principles Of investment and the. un-
desirability of speculation for any ex-
ccpt the chosen, with adequate hnan-
cial resources and with a special kind
Of intelligence that fits them to calcu-
late the hazards.
1.-THE press can help by vigorously
excluding from its advertising col