Evening star., 1933-07-20
STOCK VALUES OFF
FROM g TO SO
Commodity Quotations Also
CrumbIe-Entire Market
Is Hard Hit.
Continued From First Page.)

tCOntlnueO from flrSC Page.)
from him today whether he thought ex-
change prices were high or low enough,
or whether yesterdays and today's big
slumps should be considered particu-
larly bothersome.
Consequently, there was much talk
about how closely, if at all, the telegram
Senator Thomas, Democrat, of Okla
homa sent last night to the presidents
of the New York Stock and Chicago
Grain Exchanges might represent Mr.
Roosevelt's attitude.
Thomas said he had not talked with
the President about the messages, which
warned that unless a rule is adopted
and published establishing reasonable
amount of depreciation in any one ses-
sion. a campaign for reform will i'm
mediately take shape with possible re-
suits either closing the exchange en-
tirely or placing same under Govern
ment supervision"
The Oklahoman added that yester-
days activity demonstrates the abso-
lutte necessity for immediate adoption
of rules" limiting the loss in any one
day.
Outright Imitation.
1t was recalled that Thomas long
had been an outright lnf1ationist-
Likewise it was remarked that he
drafted the imitation rider approved by
President Roosevelt and attached to the
farm mortgage bill at the last session
of Congress. The broad powers in that
measure, however. have not been used
to obtain direct imitation.
Instead. President Roosevelt and his
advisers are concentrating on their re-
covery campaign designed to bring
higher wages and prices simultaneously
by agreements between industry, labor
and the Government.
Frequently, when asked about rises
in the stock and commodity markets.
officials have said that might be in
terpreted as a favorable indicator. but
that too much emphasis should not oe
put upon it.
Secretary of Agriculture Wallace al
ready has begun his wheat reduction
price-raising plan. He said fatty that
the jump in price to more than 81
bushel did not mean his program would
be dropped for the next year.
Wants Regulation of Exchanges.
The President does want Federal
regulation of the exchanges. In mes
sage to the last session of Congress
asking the securities law, he parenthe-
sized:
1T (the securities bilD should be
followed by legislation relating to the
better supervision of the purchase and
sale of all property dealt in on ex-
changes"
A specific bill to that end was not
presented because of number of
things. First. the special sessions
calendar already was crowded; second,
Wall Street directly asked the Presi-
dent for time to put its own house
in order.
There is. though. Federal law in
force which could restrict the amount
of money lent for speculation. if the
President decided too much was being
used that way. The Glass; -Steagall
bank reform bill permits the Federal
Reserve Board TO order and enforce
such restrictions.
Fletcher May Call Probe.
Likewise, President Roosevelt has
given his Endorsement to continuation
of the Senate Banking Committees
stock market investigation. The COM
mittee is in recess now, but has rep
resentativeS in New York looking over
the records of private banking houses.
Chairman Fletcher said that if it be-
came necessary. the committee would
study the Roosevelt boom market"
Should the fluctuations become too
marked Fletcher has the right to call
the committee back into session this
Summer Of what the committee al
ready has found, Fletcher remarked re-
Gently;
1T has shown that the Stock E1-
change. while enforcing the most rigid
honesty within its own circi,, does not
yet assume much responsibility for the
manner in which its facilities are en-
ployed to do the bidding of professional
spectators, to assist the piracies of in
dustrial warfare or to enforce the will
of financial powers
Some very definite supervision" is
needed. he added. 1t was, in part, 10
decide what that supervision should be
that the President gave his approval to
continuation of the committees inves-
tigation.