The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-01-31

An Open Letter to
the n. Y. Stock
Exchange.
by VINCENT 6. LYONS
Tines financial Editor

Times financial Editor
RICHARD WHITNEY, presi-
y IL dent, New York Stock tx
iange:
Within the last week indianapolis
has been visited by a governor of
the New York S.0cS Exchange and
a floor specialist Of that institu-
ton. Their Grip to this city was
for the purpose Of meeting with
the personnel OF the local branches
of New York Stock Exchange
houses. Similar missions are
scheduled for other cities in the in
terror.
The chief aim of the two Stock
Exchange representatives was to
explain the various functions Of
the country'S largest exchange.
The miscellaneous steps taken in
the fulhllment of an order we're
outlined to the employees. The
idea behind this visit, it is under
stood, is to prepare the personnel
Of Stock Exchange member firms
so tI.3t they will be able 10 answer
more intelligently questions regard
ing your institution.
Such action is interesting and,
in the long run. should rebound TO
the benefit Of the New York Stock
Exchange. However, it seems that
such a mission is only a halfway
proposition and does not get to the
root Of the matter. And the root
of the matter is that the mechanics
of stock market trading Is some-
thing about which the average per-
son far removed from New York
has not the least conception.
BECAUSE of the ignorance of
~ some people Of the workings
of the Stock Exchange, some very
fantastic ideas have been nurtured
in regard to the position the in
stitution you head represents IN the
economic life Of America. The
question of whether there is merit
IN these views we shall not argue.
Nevertheless, it would seem that
the New York Stock Exchange is
more directly responsible for this
condition than any other single
force or element. 1t Is undoubt-
edly true that among the severest
critics of the Stock Exchange is
10
knowledge of the intricacieS of
stock market trading, speculated in
the late lamented era of rising
prices and was caught in the jam
which developed in the latter part
of 1929.
It is barely possible that exist
ing animosity to the Stock EX-
change would be considerably re-
dUced if knowledge of the many
maneuvers taken in connection
with a security transaction we're
not regarded as the private prop
erty of the employees in brokerage
houses. Also 1t is barely possible
that the aggregate of losses sus-
tanned in the 1929 collapse of val
ues could have been mitigated to
some extent by a dissemination of
information.
W1THIN the last year or more
w the New York Stock Ex-
change has attempted to combat
the tide of resentment against
Wall Street by the adoption Of
new policies. One of these policies
was the calling in of outsiders to
act in an advisory capacity; an
other was the issuance of a finan-
cial statement for the first time in
history: still another was the an
nouncemenJ of a campaign to
educate the public. All of these
steps were well received by those
who. recognizing the benefits Of
such an institution, deplored its
dissemination to be human"
Undoubtedly the recent visit to
this city of two representatives of
the Stock Exchange is a part of
your campaign to educate the pub
lie. The employees of Out-of-town
branches Of Stock Exchange houses
dlG tAAuN EAkCl Il bAOdNACA hAAONA~
edge of the business at which they
are working. But the potential
investor or Spectator is kept III
the dark as much as ever To fully
comprehend stock market tech
nique he must ask questions and
many of these questions will not
occur to him at the time of the
interview.
The educational campaign would
be much more productive. it seems,
by going directly to the public.
Furthermore, the best method Of
bringing about such a result would
be to pattern a program after that
used by the Bell System. The lat
ter delegates crews to lecture and
explain the intricacies OF telephone
communication.
WITH this serving as a model
Wv the New York Stock EX-
change might find it profitable TO
establish a separate department
to take over the work of educating
the public in stock market proceed
ure. Lecturers could be appointed
and given the widest training and
schooling in the subject they are
to discuss. It might even be posi-
bic for the exchange to erect min
iature sets showing just how the
Stock Exchange operates. In The
event that such q program is not
practical. motion pictures could be
utilized
Schedules could be arranged so
that the crews could visit principal
cities Of the nation. The expense
incolved in such a program need
not he heavy. as lodges and bust