Evening star., 1937-04-27
Warning Against MARGINS.

While no objection can logically be
made to President Roosevelt's letter to
the head of the Civil Service Commission
giving warning against speculation by
Government employees in securities or
commodities. further elucidation OF the
matter is in order. Has the practice be-
come so common that departmental
morale is affected? Does it prevail to an
extent to lessen the efficiency of the
service? Does the prohibition-as such
in effect it is-apply to others than
those of the classified service, to higher
ups as well rs to the rank and file of
the departmental and agency personnel?
There is distinct implication in the
letter to the commission that Govern
ment employees who engage in Specula-
tive security buying may be dismissed.
The President says that engagement
In such speculative activities by any
ofi1cer or employe, whether under the
competitive civil service or not, should
be among the matters considered by
the heads Of departments and establish
ments and by the commission in passing
upon questions concerning his qualiflca-
tions for retention or Advancement"
The word retention" quite plainly car
ries the meaning that speculative buying
is 10 be rated As = capital ofense rs
far as the Government pay roll is con-
cerned.
The suggestion has been advanced that
this order to the Civil Service Commits
sion is in line with the design of the
President to knock down" commodity
and stock prices. 1t would be interest
ing to know how far. if at all, the specu-
lative stock buying of Government per-
sonnel tends toward imitation That
fraction of the 900, 900 Government en-
ployes, of whom $4,000 are in the clas-
sified service, who engage in speculative
stock buying can hardly be so great as
to have any material effect upon the
maintenance of prices their advance
ment or their reduction in the market.
AAo"CFSi, tlidG 10 IlldllCl lOl 1u1 IllCI
elucidation.
If the holding Of q Government COM
mission in the subordinate ranks is a
barrier to speculation, it surely should
apply to others than those OF the rank
and file in the classified or the I'M
classified services. Are not members
nf CnnOvaSS ho hinh of
eminent service, contributary to in
flationary" results in any stock buying
in which they may engage? 1t is not
to be doubted that many OF them do
buy on margins from time to time
Surely the prohibition should apply to
them not as a moral proposition, but
as preventive Of inflationary activities.
1t is conceivable that such = prohibi-
ton should distinctly apply to the COM
paratiVely small number of Govern
ment workers engaged in the handling
Of funds. But the reason for such a
limitation upon the financial enterprise
OF those who might be tempted to specu-
late at the risk of involvement in pecu-
lation does not apply to those OF the
other ranks whose duties have nothing
whatever to do with the handling of
cash or the keeping OF fiscal accounts
Yet all appear to be included in the
present prohibition.
Stock buying on margin is a risky
h,lSipeSS TT has led to noapv O 6popeio1
disaster. 1t has brought ruin to in
dividuals and bankruptcy to business
enterprises. But it may be doubted
whether warning of possible dismissal
from the Government service because
of engagement in this practice will by
any appreciable degree correct the
tendency to seek fortune by short
cuts.