Evening star., 1934-02-08
COMMODITY MART
INCLUDED IN BILL
Chairman Fletcher Says
Pecora Is Studying
Regulation Form.
BY the Associated Press.

BY the Associated Press.
Chairman Fletcher OF the Senate
Banking Committee today said that
at the request of President Roosevelt
his bill to be introduced tomorrow for
regulation Of stock exchanges also
would provide for supervision Of COM
modify exchanges.
Fletcher said the form Of regulation
for the commodity exchanges had not
been worked out, but was being studied
today by Ferdinand Pecora. commit
tee counsel, and his staff.
The committee chairman explained
the bill would be ready for introduc-
ton tomorrow in order that hearings
could begin next Tuesday.
Decision to include commodity ex-
changes was reached Fletcher said
at a conference with President Roose-
welt at the White House yesterday, at
which the Chief Executive gave the
go ahead" signal for stock market
legislation this session
The President asked him, Fletcher
said. if the country was ready for
stock market regulation.
Stock Exchange Ready.
The veteran Senator said he replied
that not only the country but the
Stock Exchange itself was ready and
that this was the best time to put 1t
through.
Loft inI hot hn v>raui-
sions of the bill concerning stock ex-
changes were virtually completed and
provided for licensing all exchanges
and placing them under supervision
of the Federal Trade Commission,
which would have broad power to set
up rules for trading.
The bill contains a fat prohibition
against pool operations, Fletcher said,
making it criminal conspiracy pun
ishable by fine and imprisonment.
He said it also provided for curb
on marginal trading by requiring that
such accounts must be covered by so
per cent cash.
Supervision Of commodity exchanges
also will be placed under the Federal
Trade Commission, Fletcher said. He
told newspaper men he had suggested
to the President this should be han
died by the Agriculture Department,
but the Chief Executive felt that
branch Of the Government already
had its hands full
Fletcher said he did not believe
Secretary Wallace had submitted his
for regulation of the
commodity exchanges, which Con-
gress had been awaiting He indi-
Gated the legislation to regulate the
markets might later be
made a separate bill.
Those at Conference.
At the White House conference yes
terday. those participating, in addi-
ton to Fletcher and Chairman Ray
burn Of the House Commerce Com
mittee, were Secretary Roper, chair
man of an Interdepartmental Stock
Exchange Committee, and Pecora.
Pecora is playing a prominent role
in shaping the proposed measure to
reflect findings OF the Stock Market
Investigating Committee. The bill is
understood to embody also the princi-
pal ideas advanced by the Roper
Committee.
The President called for such ac-
ton as a fulf1llment Of the Demo-
cratic party platform. He met with
the congressional leaders and stock
market authorities for an hour and a
half.
There was no indication that any
new situation had provoked the legis-
lative move. Stock market prices have
been going rapidly upward in recent
days.
The President has emphasized on
several occasions that he wanted
gradual movements in prices so as to
avoid any collapse which might result
from too rapid a rise.