Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-15
Presidents Conference With
Exchange Heads Linked
With Short Selling.
U. S. WITHOUT POWER
TO TAKE DIRECT ACTION
Governments Interest Reported as
Having Possible Reaction
on Wall Street.
ny REX COLLIER.

@OA@@~AAN@@e
Disclosure that President Hoover has
discussed the stock market situation with
officials of the New York Stock Ex-
change gave rise today to speculation
as to what, If anything, the Govern
ment can do to steady the market I'M
der repeated assaults of the bears.
Just what took place Sunday night
at the White House conference between
the President and Richard Whitney.
president of the New York Exchange,
anC Allen Lindley, chairman of the
Business Conduct Committee of the ex-
change, has not been fully disclosed.
The impression cleaned from White
House expressions is that MIR. Hoover
did most of the listening. 1t was point
ed out the parley was called at the re-
quest of the exchange officials them
selves.
According to the Associated Press Mr..
Whitney has characterized the meeting
as delightful personal visit" during
which I'VE spoke about everything in
general"
Authority to Act Lacking.
That the Government, while worried
over TIE market depression, is without
author. y to do anything about it for
mally was the consensus Of officials
A report that the Federal Reserve
Board might take hand in the crisis,
as It did when stocks were inflated
some months ago, was denied emphati-
cally by Eugene Meyer, the new gov
ernor of the board.
Another rtlmor that the Bureau OF
Investigation of the Department OF
Justice was making an inquiry into an
alleged Conspiracy to keep stock
promptness by j. Edgar Hoover, direc-
tor Of the bureau. Both officials ex-
pressed the opinion they were with
out jurisdiction IN the matter.
Meyer declared the present emergency
Is not analogous to that which existed
when the Reserve Board issued its call
money statement during the bull market
era.
"At that time Federal Reserve money
was being diverted IN alarming guam
titles into speculative channels" MI.
Never explained. "Since the Federal
Reserve system was affected, the board,
of which I was then not a member,
deemed it wise to take action. No COM
parable situation exists today. The
Federal Reserve system has no cause to
take hand"
Private Institution.
Mr.. Meyer said he did not see what
the Government could do officially to
steady the market, II 1t so desired. the
New York Stock Exchange, he pointed
out, is not licensed by the Government,
as is the Chicago Board of Trade under
the grain futures act. The exchange Is
a private institution without Official
status under Federal laws.
In the case of short selling OF RUS
sian wheat by the Soviet, Mr.. Meyer
said, Secretary of Agriculture Hyde was
authorized by law to step in and con-
duct an investigation and adopt regu-
latory measures. Although thus en-
powered by law, it is recalled the cabi-
net member was extremely reluctant
to be put in the position of welding a
governmental club over the head Of
business. He placed the burden OF &C
ton on the Board of Trade itself.
1t is apparent that this same re-
luctance to put Uncle Sam in the light
of interfering with private business
dominates the present developments
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