The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-10-23
Trends
Stock Market Chief
to Make Good
Will Tour.
by VINCENT LYONS
Times Financial Editor


~ the New York Stock Exchange,
is TO become an ambassador of
good will Tor that Institution. 1t
mas just been disclosed that Mr..
Gay, who severa, months ago sue
ceeded Richard Whitney, is to
leave on an extended trip which
will take him out to the Pacific
Coast. In his peregrinations ne
will preach the gospel of the Stock
Exchange, acquainting the public
with its functions and attempting
to make for a better companion
ship between his institution and
the public.
The need for this very thing has
long been felt and the Stock EX-
change has endeayored to cope
with it by instituting reforms in
It's internal set-up. These reforms,
although they were designed to
win public sympathy, lost some OF
their vigor due to the fact that IN
order to be understood they had to
be subjected to Interpretation in
the light of past history
In the last three months OF 1884
the Stock Exchange took three de-
liberate steps along this path. the
first was the appointment OF a So
called brain trust comprised OF
non-members, to offer suggestions
for the operation Of the securities
market. The second was the pre-
sentation, for public consumption,
of a financial statement-the first
in the history Of the organization.
The third was the inauguration OF
a campaign to educate the pubic
in the value of the Stock Exchange.
ONCE 1929 the New York Stock
- Exchange has deteriorated
few notches in the esteem of the
general public. To large degree
this reputation was unearned as
many of the enemies Of the eX-
change we're sore losers. IhlS
latter group enjoyed the game
while the rising market was plllng
up paper profits for them. But
when the collapse came and their
accounts were closed out because
of inadequate margins they COM
planned bitterly and long.
Naturally, when the broker-me
bers Of the Stock Exchange 'ent
out their periodic calls for addi-
tional margin they were attempt
ing to protect themselves and
their clients. Many of these clients
loaded themselves up on a shoe
string and when the time came to
put up more funds they had used
every resource. Consequently, ig-
nor2nCe was to large extent re-
s?onsible for the predicament in
which many persons found them
selves at that time.
This situation moreover. had the
effect of exhuming prejudices md
animoSitieS of long standing. These
feelings were forgotten when the
stock market was on the ascend
ency, but when the reversal came
they were restored.
ID ICHARD WHITNEY, who was
IN president of the New York
Stock Exchange from 1880 until a
few months ago, was entrusted
with the handling of the market
mechanism during its most trying
period. Many people, however,
could not diSaSsociate the name of
Whitney from that of Morgan and
this added to the unpopularity of
the institution.
The election of Mr.. Gay brought
comparative unknown to the helm.
In the several speeches he has
made the new Stock Exchange
president has attempted to ac-
quaint the general public with the
functions, aims and limitations of
the organization he heads. He, too,
has realized that the Stock Ex-
changes biggest problem is trying
to hew away the prejudices and
bitter feelings which surround it.
Several months ago the New
York Stock Exchange appointed
Eugene Lokey, financial writer of
the New York Times, as head of
the public relations committee.
Undoubtedly it was assumed that
Mr.. Lokey, who was so close to the
Stock Exchange, but could look OBJ
jectively at it, would be in posi-
ton to offer valuable suggestions in
its educational campaign.