Evening star., 1934-05-07
SENATE DEBATES
STOCK MEASURE
Administration of Law Is
Expected to Bring Sharp
Fight on Floor.
BY G.. GOULD LINCOLN.

The Senate today began considera
ton of the Stock Exchange regulation
bill taking it up on motion of Sen
ator Fletcher of Florida, chairman of
the Banking and Currency Committee.
Senator Fletcher described the bill
in detail and also the Investigations of
the Stock Exchange by his committee
which was begun two years ago.
Almost Immediately. the question
'"hether the regulation of the Stock
Exchange should be by the Federal
Trade Commission or by a new COM
mission was thrown into the debate.
Senator Costigan. Democrat, of Colo
rado. interrupted Senator Fletcher.
asking why it was the Senate Com
mlttee bill calls for the administra-
ton of the law by new commission
instead of by the Federal Trade Com
mission.
Majority Favor Commission.
Senator Fletcher replied that he
personally saw no reason why the
Trade Commission should not admin
ister the proposed law. A majority
of the committee. however, he said
had argued that the Trade Commis
sion was not expert in the handling
of securities and that new commits
sion of men entirely familiar with the
handling of securities should be ap-
pointed.
Senator Barkley of Kentucky and
Senator Glass of Virginia, both dis
claiming any attack upon the Trade
Commission. told the Senate the COM
mittee had believed the stock exchange
regulation could be administered more
effectively by a new and separate
commission. Senator Glass said that
it was inconceivable that the Trade
Commission. and the Federal Reserve
Board. could do as effectively the work
of the new commission. especially as
they now have their hands full with
other work requiring all their time
and ingenuity.
Senator Glass insisted the Federal
Reserve Board should be kept as far
away from stock gambling as pos
sible.
Sees Additional Cost.
Senator CoStigan declared that the
appointment of a new commission
would result in much duplication of
work and an additional expenditure
by the Government of half million
dollars year
The stock exchange regulation bill
considered one of the major measures
of the Roosevelt program, was given
the right of way today because the
Senate was not ready to proceed with
the final disposition of the Glass bill
providing for additional credit for in
dustry through the Federal Reserve
System. The fact that the silver bloc
had been unable to see President
Roosevelt again today and reach an
agreement on the proposed silver leg
islation was an important factor in
laying aside the Glass bill. The silver
proposal is pending as an amendment
to the Glass bill.
The stock exchange bill is expected
to lead to real battle on the floor of
the Senate over some of the provisions
written into the bill by the Senate
Finance Committee. Final action was
predicted by Wednesday.
Some of the members of the Senate
Democratic members-would might
lily like to have word from President
Roosevelt regarding these contro-
verted subjects. 1t has been reported
that the President was in favor of
having a new commission to deal with
the stock exchange. But Senators
/ in position to know insist that this
report is not correct.
Fear Hamstringing More.
Friends of the Federal Trade Com
mission in the Senate look upon the
Senate committee proposal to create
a new commission as merely an effort
to stif1e and hamstring the Trade
Commission. 1t is clear that if the
Congress creates a new stock ex-
change commission the work now
done by the Federal Trade Commits
sion, under the terms of the securities
act passed last year by Congress, will
be turned over to the new commits
sion. In fact. Senator Fletcher, in
offering certain amendments to the
securities act which it is proposed to
insert in the stock exchange bill dur
ing its consideration in the Senate.
has included a provision for the
transfer of the securities act admin
istration from the Trade Commission
to the proposed new stock market
commission. He says very frankly
that the securities act and the stock
exchange act should both be admin
istered by the same body.
Many of the Senators, as well as a
very considerable majority of the
House, insist that the Trade Commis-
sion should be the body to administer
both these laws. both because the
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