Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-15
move TO RESTORE
| CONFIDENCE ASKED
Walsh Urges Hoover to Call
Farley of leaders to Clear
Securities Situation.
BY G. GOULD LINCOLN.

Senator David I. Walsh of Massa-
chusetts today proposed that President
Hoover call a conference of outstand-
ing business men to clean house in
order to restore public confidence in
commercial securities.
The Massachusetts, Senator also de-
clared himself in favor of legislation.
II necessary. to prevent short selling"
on the stock and grain exchanges as
a necessary curb to speculation.
Senator Walsh took the view that
the water" in securities of commer-
cial concerns of all kinds must be
squeezed out and valuations placed on
the actual physical values of property
II there is to be a real recovery from
the present depression and an avoid
ance OF future depressions.
Would Correct Mistakes.
1T is of little avail now to discuss
the economic mistakes that have result
ed and that have contributed in large
part to the present economic depres-
SION" said Senator Walsh, who returned
TO Washington today from Massachu-
sets. 1T Is important however, to
find out what mistakes should be cor
rected in order to restore prosperity as
speedily as possible.
The most outstanding factor in the
present situation is the doubling and
questioning attitude of the public
toward the validity of commercial Sc
curities. In my Judgment steps ought
to be taken at once to assure the public
that the large business units of this
country are being conducted on an eff
Gent honest and economic basis
When the public Is convinced of this
TACT, the money that Is in vaults. postal
savings and savings banks will find
its way to give to business the financial
support that it needs and thereby in
crease the value Of commercial paper.
stocks and bonds.
Words Not Enough.
"A mere statement that the people
ought 10 invest and have confidence. in
view Of the awful havoc that has re-
suited to investors in the past through
overspeculation and overcapitaliza-
ton, will not suffice. Overt acts upon
the part OF the business leaders of this
country are primarily essential
Legislation is not so necessary In
deed, it Is question If any legislation
can reach the fundamental cause Of
the present depression, which, to re-
peat. say is a skeptical attitude the
public has toward the integrity and
Soundness of many Of the business units
OF this country.
Legislation may be helpful in reliev-
ing unemployment through appropria-
tions for public works and for helping
to feed and shelter, in cooperation
with private agencies, those in distress.
In my humble judgment one of the
most effective things that could be
done to sharply turn the tide in the
direction Of an era of prosperity would
be for the President of the United
States, or group of representative
public-Spirited business leaders to call
together the leaders of industry and
finance IN solemn convention. actuated
by the highest patriotic motives. to
study every phase of our present eco
what legislation. II any. Is necessary
to strengthen the peoples confidence
in business.
Spirit Is What Counts.
"Of course, If the business leaders Of
the country are unwilling to recognize
and boldly denounce economic factors
that have contributed largely to the de-
pressicn, such a convention would have
negligible results. 1 am assuming that
the depression has continued long
enough and that the public's reluctance
to invest in business securities will ac-
tuate the business leaders of this coun-
try to begin reconstruction and reha-
Utilization in a spirit akin to that Of
founders displayed in framing this
Government. OF course. if this spirit
is lacking there is nothing left but for
the Congress and the State Legisla-
lures to attempt to put teeth into tie
present corporation laws that will end
misdeeds and unethical practices that
have put business in the condition
1t Is"
The Massachusetts, Senator said the
leadership Of the highest caibler s
necessary in the present situation IN
this country. While he RETAINED from
discussing presidential politics he maze
it clear that the Democratic party. Of
which he is a member. must select its
strongest candidate and a man well
qualified II the Democratic party is to
assume controlling position