Carolina watchman. [volume] (Salisbury, N.C.) 1871-1937, 1934-04-27
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WASHINGTON
The Security Act
| The Labor Legislation
| Turn To Economic
| Stability

Adjournment OF Congress by
May 18th is the definite program
agreed upon by House leaders and
the President. But there is still 4
fair chance that the Senate may
upset this, unless some of the things
upon which a number of Senator's
have SET their hearts are agreed on
before that date.
Most important of the items
which the President insisted upon
in his conferences with Congress
sional leaders On his return from
his fishing trip is an appropriation
of a billion and a half dollars to
continue Federal relief work. More
unemployed are now on the Gov
eminent relief rolls that at any pre-
vious time; nearly twelve million
persons in all. The expected new
funds will be added to those already
available for public works, direct
Federal relief and aid to states and
municipalities.
Next on the Presidents program
of essential legislation is the Stock
Exchange regulation bill. This had
been amended 50 that it will not put
the stock exchanges out of business,
as the original measure was calcu-
lated to do. The vital importance
of maintaining an open market in
which anyone who wants to buy or
sell stocks and bonds can always
do so. at a price, is assured by the
bill as it stands, and the drastic
provisions which would compel the
liquidation of billions in outstanding
bank loans have beeH modified.
There are still plenty of teeth in the
bill, however, to discourage wild
speculation, which is its main Pur-
pose. Congress and the Administer
ton still believe that all of our pres
ent troubles started in Wall Street.
The President also is insistent
upon the passage of amendments
to the Securities Act of last year.
1t has been learned, from nearly a
years experience, that it is imPos-
sible to get honest men to take the
risk of offering new securitis tor
sale, when under hat law they
night be sent to Jail because some
salesman of whom they had never
heard, long after the securities had
passed out of their hands, did not
tell the whole truth about them,
and any time within ten years any
one who bought them and was sick
of his bargain could claim his
money back from the original
issuers.
Since there is only n way
whereby private capital can invest
in business and industry, and that
is BY the purchase of bonds and
shares of a business corporation,
and nearly every industry is con-
stantly in need Of fresh capital, par
ticularlv so at the present time, the
idea is to make it safe for the in
dustries to float new bond and share
issues, and so put private capital at
work as we'll as Government funds,
The understanding here is that
the President would be satisfied to
have Congress pass those three ma
jor pieces of legislation and then go
home. But the indications are that
Congress is going to take matters
into its own hands and pass another
initiation measure. This will be the
Dies silver bill, as modified by
amendments drafted by Senator
Thomas of Oklahoma, and on which
the farm bloc" and the Silver
bloc are in agreement and are GER
tain they can get enough votes to
pass the bill. This would raise the
price of silver, put $50,ooo,ooo a
month of new silver certificates into
circulation, and put a premium on
silver used by foreign buyers for
American agricultural products.
There is less likelihood as time
goes on of the passage of the Wag-