Evening star., 1934-08-28

Preliminary regulations established
by the Securities and Exchange Com
mission are regarded by the press as
quite satisfactory and reaSsuring to
those who feared strangling of buSi-
ness by unmeasured restrictions.
while the rules prescribed and the
information sought are admittedly of
an explanatory character and will be
used largely for formulating a more
extensive and more permanent system
of regulation and supervision" says
the Providence Journal, "the con-
sensus in reliable financial and eco
nomic circles is that the commission
has made q satisfactory beginning.
1t is earnestly hoped that future de-
velopments will afford no reason to
alter this common judgment" The
Morgantown Dominion-NewS thinks
that "the new Securities and Ex-
change Commission has fulfilled its
promise that it was the purpose of
the commission to regulate. and not
to Stifle, the securities business" and
finds in the rules issued indication
of "a surprising breadth of knowl-
edge of the securities business by the
drafterS."
This is likewise the opinion of the
Charleston Daily Mail, which declares
that there is good ground for be-
lieving that the commission itself,
while fully accepting its duties under
the regulatory provisions of the law,
is aware of the extreme delicacy of
the investment organism which those
provisions affect, and also of the
highly important part that a free
movement of capital into the invest
ment market will necessarily play in
revival Of financial and Industrial
activity"
"All this puts an end to the fear
that movement toward 'deliSting' Sc
curities might go far at this time"
states the Boston Transcript. while
it had been believed that many cor
porations would find the registration
requirements too burdensome to JUS
tify the clerical labor of making i'm
mediate applications for listing, the
exchanges themselves will now be in
a position practically to blanket in all
securities which they have considered
worthy of a place on their boards.
This makes for a broad and open
market. For such evidence of COM
mon sense and a reasonable faith in
the normally constituted leadership of
the Nations business and finance the
newly organized Securities and Ex-
change Commission deserves fair
praise"
The Lowell Evening Leader agrees
that "such rules as have been made
are generally regarded as reasonable"
and contends that the commission
'has wisely chosen to move slowly"
In this connection the Springfield
Daily News takes the position that
wall Street is to be given the op-
portunity to clean house before the
Securities and Exchange Commission
moves into action" and adds that "a
stable, upward trend in the market
is the aim of the commission, and
its members will be found ready and
eager to meet exchange officials half
way"
"One of the difficulties confront
ing the new deal market control pro-
gram" in the opinion of the Syracuse
Herald, "is that hereafter investors |
who put their funds into corporations,
projects and speculative adventures
listed on Government-co ex-
changes and analyzed in Government |
documents inevitably will blame |
Uncle Sam if things go wrong"
On the other hand, the New Haven |
Journal Courier emphasizes the state
ment by Chairman Kennedy that the
commissions control was no guaran-
tee Of the worth of a stock and that