The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1931-12-16
SHORT SELLER
DEFENDED BY
CHANCE HEAD
Markets Trouble Is Lack of
Buyers, Whitney Tells
Group.
BIZ United Press

By United Press
SYRACUSE, N. Y, Dec. l6.-The
wave of criticism against short SELL
ing is due largely to the pubIics
desire to find an explanation for
the market slump, according to
Richard Whitney, president of the
New York Stock Exchange, speak
ing before the Syracuse Chamber of
Commerce Tuesday night.
Whitney supplemented his de-
tense of short selling here last night
in the face of two senate resolutions
demanding inquiries.
Senator Capper, Kansas, Tuesday
supplemented a resolution asking
investigation, and offered by Senator
Hastings, Delaware, by calling for
names of persons and firms who
have sold short, the names of the
securities involved, the amounts
concerned and other particulars.
Capper declared he was convinced
that short selling on the New York
Stock Exchange and other exchanges
had been major cause in pro-
ducing the econmic depression.
Defends Short Sellers
The Kansas senator seeks as the
ultimate result of his resolution fed
eral regulation of stock exchanges
Gin tn public interest" He sug-
gestS the federal trade commission
or some other fundamentally as
the regulating agent.
1.-THE real trouble with the mar
ket," Whitney declared, lis the I'M
willingness Of the public to buy"
This, he explained, was because
you were not sure that the worst
was over and you still expected that
the next day might bring forth
bad news
Confidence" he declared, els
bound tC return, and when it does
prices will rise. 1 am firmly con-
vinced that the real explanation
for the tremendous declines lies in
the worldwide disturbance of our
business and credit connections. It
is not any single factor, like short
selling, but the combination of
many more important and basic fac
tors which has brought about the
result"
Whitney offered figures of the
exchange in defense of short SELL
ing, showing that since May 25,
1881, only fifteen stocks at any
time had short interest of more
than 100000 shares, and that
stocks with the widest declines
during this period have had small
short interests.
Public MiSinformed
The public has been misinformed
repeatedly, he said. as to the ex-
tent of short selling operations. In
vestigation by the exchange of re-
ports of widespread short selling ac-
tivities showed that short sales of
United States Steel on Oct. %, 1881
amounted to "a per cent, against
an enormously reported 30 per cent;
General Electric II per cent in
stead of a reported 70 per cent and
North American 71A per cent,
against a reported 80 per cent.
The total short position in the
market from May Is to Nov. 30,
Whitney said, declined about 1885,
900 shares. Computing daily "in
and out" transactions of short SELL
ers at per cent, which is more
than TIE average during the last
two months, this type Of trading
accounted for, about 100000
shares, leaving 100000 shares
owned outright or held on margin.
In the light of existing facts,
Whitney said, the exchanges duty
was plain and it must oppose at
temptS to cure present conditions
by unSound means
I'm so far as the exchange is con-
cerned," he declared, "the defense
of short selling is not a matter of
opinion; it is matter of principle"