Evening star., 1932-03-05
A Useful Investigation.

The Senate has ordered a thorough
Investigation of the stock market OPP
erations. 1t proposes, through its Com
mittee on Banking and Currency, 10
look into the operations OF both the
bulls and the bears. 1t should do SO.
The facilities of the stock market have
been used too often to ruin legitimate
business. Yet the big interests, whose
moves are followed by huge conse-
ouences in this country and abroad,
have maintained that a full and free
operation of the stock market is
necessity if business is to be done. The
country, however, is becoming rather
sick of the way in which business is
done on the stock market. If the Sen
ate Committee can throw light on the
operations of the bulls and the bears
so much the better. A country which
seems to live by the stock ticker Is
certainly entitled to know something
about the forces that control IN the
market.
OCoplbE ldCb A4AuI SAiSiS @At'o SNeAA
q roar in and out of Congress against
short selling-the selling of securities
not possessed by the seller for the pur-
pose of beating down prices-the reso-
luton of the Senate does not propose
to put an end to short selling. Perhaps
after all the facts are in, however, the
demand for some measure of regula-
ton. if not prohibition, of short selling
will be undertaken by an aroused Con-
gress. The defenders of short selling
have been those who profit by the
practice.
According to reports there is suspicion
among members of the Senate Banking
and Currency Committee that it will be
developed during the course of the inquiry
that the bears of 1880, 1881 and 1882
were in considerable part the bulls of
1927 and 1928 and the first three quar-
ters of 1929 Big operators find it posi-
BILE to make money out of the public
whichever way the market prices go.
The regularity with which market prices
have been forced down after every rally
during the last two and half years
has been noted 1t seems almost as
though there was an active force in
the market which says: So far you shall
20 and no farther. And with each raid
on the market millions have been made
by operators and millions of value in
actual business have been destroyed
Although the fault lies not wholly
with the stock market there are plenty
of men in the country today who look
upon the institution as anything but
an unmixed blessing. Back of the mar
ket trading lies, it is true, story OF
grossly inflated securities, or values
pyramided until they bore no relation
to actual physical properties. High
finance" took on an ugly meaning years
ago. 1t has lost none of its reputation
for dirty dealing in recent years
The Senate committee is empowered
to employ counsel. 1t should find the
best, and go without gloves into a
scrutiny of the market operations.
Gambling in wheat and cotton and
other commodities. as well as in securi-
ties, has been a bane of the people for
years. The farmer has had no VOICE
whatever in the prices he takes for his
commodities. He has been told what to
take by the operations of the specu-
lators.
A free market is desirable. But a free
market which permits crooked operators
to mulct the public and crooked busi-
ness to wipe out competitors in a
crooked way is another matter entirely.