Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-08-04
Greater Era Seen for u. S.
Despite Stock Thieves
Sincere Efforts by Public Officials and
Exchanges Seen as Meaning a Lasting
Confidence in Securities and Markets.
BY II. N. TREVOR.

Copyright, 1923, by New York COMMERCIAL
Legitimate investment enterprises
are suffering today because OF the
harm which has been done over the
past decade by bucketshops ana
crooked promoters. The past rev
months have seen the American public
fearful of buying any stocks because
of what has been revealed regarding
crooked finance.
This is a condition which follows
every big housekeeping Of crooked
financial affairs. There has been the
same sort of timidity recently by the
public with regard to the stock market
that was witnessed for a few years
after the period of revelations on
financial swindles about twelve years
ago. Capital, instead of seeking
legitimate investment channels In Sc
curities, is diverted elsewhere or re-
mains Stagnant.
1t is American industry which suf-
fcrs most from such conditions. Com
panies which need money for legiti-
mate expansion and which properly
should be able to look to the public
for she financing of their enterprises.
ant, the general development of Amer
growth They suffer this handicap,
not through any fault of their own.
but because the spirit of confidence
on which the financial structure must
rest has been so abused that the pub
lie is fearful of any longer trying to
tell the good from the bad.
These companies suffer not alone.
but the hundreds of thousands of
wage earners dependent on the in
duStries which they represent suffer.
as do the innumerable companies
whose relations are interviewer with
them and with the wage-earners.
The restoration of the spirit of con-
fidence of the American public in the
stock market and in securities is a
subject of concern reaching. there
fore. far beyond the sphere of the
securities broker. the securities pro-
motors. and the securities exchanges.
1t reaches into every phase of Amer
lean business life.
Restored and Ruined.
How can that spirit of confidence
be restored?
What is being done to restore it?
a decade after being shattered, it
was restored only to be ruined again.
This time public confidence is not to
be restored until there are very plain
indications that the house cleaning by
the constituted authorities. public and
otherwise. is not to be merely spec
tacular play designed to satisfy pres
ent Indignation. Evidences must be
provided that constant vigil is to
w MAIN lIitu DN lllp TO
prevent the growth at any time in the
future of any such system of crook
edneSS as those of the past few years
Fortunately, evidences that the au-
thorities are mapping out their
crusadinG campaigns on the lines that
call for that constant vigil are begin
ming to appear.
Saner and more practical methods
OF proceeding against the evils OF
crooked finance are being folio ed
now than in the past
AS an instance, there may be cited
the vast change which has developed
with regard to the methods being
pursued in the efforts to curb crook ed
stock promotions
Attention has already been drawn
to the manner in which United States
post Office authorities. in their con-
slant campaign against stock Swind-
lerS who use the mails. have been
handicapped because OF limited in
VestigatinS forces and limited appro-
priations. Similarly. many efficient
state prosecuting organizations have
been thus hampered.
For the securities communities and
the business communities to complain