Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-08-03
EXCHANGE ADOPTS
SPECULATION CURB
Takes Most Drastic Action
n History, Fixing Margin
30 to 10 Per Cent.
continued From First Page.)

sign displayed In transactions on ex-
change and recklessness and ill-consid-
cred action are still the implement Of
rich and poor investors alike"
1T is unsafe" he warned. ito par
ticipate in get-rich- quick schemes"
Two Of his colleagues, Senators Pat
Harrison of Mississippi and Robert r.
Reynolds of North Carolina. both Demo-
Gratis. were present at the celebration.
The spectacle presented in recent
days of wild and unrestrained specu-
lation on the exchanges is both pitiable
and contemplate, Robinson said.
Have we forgotten, shall we 50 quickly
forget the lesson of 1929 when mil
lions OF uniformed investors, some of
them sacrificing their homes and other
necessities for the gamblers chance of
winning quick and easy profits, precipi-
tated disaster which will be repeated
If the orgy of speculation now in
progress continues and gathers volume
1t is unsafe to participate in get-rich-
quick schemes.
Work Sure Reliance.
mo man. however bold or resource
full, can build a successful career on
that foundation. Good old-fashioned
labor patient work with hand and
brain, are the only sure reliance.
The American people cannot look to
the Government for employment ex-
cept in times of emergency. They must
build their own fortunes and rely upon
their own knowledge and skill Those
who have wealth, whether great or
small, will as likely lose their fortunes
in speculation on exchanges as IN bets
on the turf, the wheel or the dealing
Of the card.
The recent session of Congress
passed a stringent securities measure
designed to protect the public against
commerce in fraudulent stocks and
bonds. The indications are that radical
measures must be resoted to to safe
guard the business of the Nation and
the happiness of the people against
foolish and unrestr aimed so-called
transactions on the market even If it
becomes necessary to outlaw contracts
on margins"
Something With Teeth.
The decision of the exchange to
Scrunnize closely pool operations
through a compulsory weekly account
ing Of all trades OF pools, syndicates,
joint accounts and options, in which
member firms are participants, was de-
scribed by many of the brokers as
something with teeth" and a measure
which should tend to discourage a
repetition Of some of the speculative
excuses of the past.
In some quarters the opinion was
expressed that tightening Of the rule
on margins was due to the practice
Of relatively small number of firms
IN seeking accounts on thin margins
to build up their business.
The exchanges further curtailing Of
the customers men was viewed as an
extension of the EXCHANGES numerous
efforts to regulate business solicitation
after the markets collapse in 1929.
The new rule, 1t was explained in
brokerage quarters, was to discourage
high-power solicitation Of margin bust
ness and especially to discourage the
practice Of some customers men IN
establishing contacts with the Gus
toners In their homes.
Some Considering Removal.
Published reports that some Stock
Exchange members were considering
removal 81 the exchange to Jersey
City or Newark, N. j., to avoid pro-
posed increases in transfer taxes led
Wall Street to wonder whether the
exchange would not find It's big prop
erty investment here a big obstacle
to such removal.
At the same time no secret is being
made Of the exchanges concern over
the present drive by New York City
for further levies on dealings The
proposed tax would be in addition to
the State and Federal taxes already
IN effect and would mean a total I'M
post Of - or 10 cents a share m tssnns
actions in stocks.