The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1934-03-21
WALL STREET
MEN OPPOSED
TO CONTROL
Sponsors Accused of Seek
ing u. S. Supervision for
Industry in Bill
By c. c. NICOLET
United Press Staff Correspondent

WASHINGTON, Mar. 81. (UP)
Wall Street accused the sponsors
of the revised stock exchange reg
ulation bill yesterday with seeking
to bring all industry and COM
merce under government control.
Richard Whitney, president of
the New York stock exchange and
spokesman for "the Street" said
that notifications in the revised
bill were not sufficient to prevent
wholesale liquidation of securities.
"It is apparent from even a
hasty reading of this BILL" he said,
"that its underlying purpose is to
carry out the social theories of
those who believe that the fed
eral government should control
not only credit and the operation
of stock exchanges. but also all
commerce and industry"
The revised bill was drafted by
treasury, federal reserve board
and Reconstruction Finance cor
poration officials working with
congressman, and is credited with
administration backing. Chairman
Rayburn, Democrat, Texas, of the
house banking committee said to-
day that the treasury, reserve
board and R. F. C. approved it.
1t appeared, therefore, that
Whitney was accusing the admin
istraticn, including its more con-
sentative financial agencies with
undertaking to regiment industry,
as opponents of the Bankhead
compulsory cotton control bill
contend that it is move toward
RECOMMENDATION of agriculture.
Thus, while the railroad, auto
mobile and steel situations give
an air of industrial strife to
Washington, other events seem to
be preparing for a real test of
strength between those who be-
lieve in excepting the government
out of busIess"-a group little
heard of for many months now
and those who believe that at least
temporarily. considerable degree
of compulsion is necessary for
recovery.
Whitney's attack on the new ex-
change bill centered on two
points: Authority given the feder-
al trade commission to dictate au-
diting methods and require re-
ports from industries with stocks
listed on exchanges, and rigid
margin specifications subject to
only slight variation by the fed
eral reserve board.
The former, he said, gives the
commission power "to dominate
the affairs" of listed corporations.
The latter, he believes, means that
margin requirements will be "eith-
er prohibitive or over-liberal, de-
pending upon the course of
prices" A decline in the market
and retardation of recovery will
result, he asserted.
The recovery program under
went its most serious attack from
inside the administration today
when the federal trade commits
sion submitted to the senate a re-
port charging that the steel code
encourages monopolistic practices,
squeezes small operators and al
lows price fixing.
After its rush of speed Monday,
congress devoted itself chiefly to
minor measures and debates on
old topics, with several of the
standard airmail speeches. pro and
con, being made all over again.
Chairman Harrison of the sem
ate finance committee said he
would seek to eliminate a dozen
nuisance taxes in the pending tax
revision bill, making up the de-
flclency in revenue by retaining
the capital stock tax which the
bill now kills.
The senate called on Treasury
Secretary Morgenthau to furnish |
a list of all known hoarders of
silver - an outgrowth of the
light between congress and the
treasury over the secretary's re-
cent statement that some silver
advocates were mot disinterest-
ed"
Oil Administrator Ickes moved
toward permanent sterilization of
the oil industry, proposing a pc
troleum administrative body to ex-
tend beyond the expiration of the
national industrial recovery act
a precautionary move just in case
the whole act isn't extended. 1t
op,o;roz -, T,no 1OQS