Evening star., 1942-06-21
Findnciers Join
SEC in Moves
To End Feud
Both Wall Street and
Washington Seeking
War Harmony
By FRANK MACMILLEN,
Wide World Business Writer.

NEW YORK, June 20-Washing-
ton and Wall Street, after a decade
long feud took important joint
measures this week to put their re-
lations on a friendlier footing for
the duration and on into the cru
cial postwar period.
One shewd observer, who listened
not only to set speeches by Secur-
ities and Exchange commissioners
and financial big-wigs. but also
watched how they got along to-
gether in corridors and cocktail
lounges, said:
1T looks like we have gotten to
the grownup state of security regu-
lation, where both Washington and
Wall Street recognize mutual obli-
cations and can quit spatting like
children"
The occasion of the unaccustomed
love feast was the quarterly meet
ing Of the governors of the Associa-
ton Of Stock Exchange Firms, the
brokerage business trade associa-
ton.
The associations revival from a
semi-moribund state was one of the
first steps taken by Emil Schram
when he left a New Deal admin
strative job year ago to become
president of the New York Stock
Exchange.
Regarded as Significant.
1t appeared no mere chance to
most observers here that the gov
ernors of the association had been
invited to hold their regular pow-
WOW in Philadelphia. new home Of
the SEC, as guests of the Philadel-
phia Stock Exchange.
Also significant appeared the fact
that the Philadelphians included in
their hospitality key members of
the Investment Bankers Associa-
ton and the National Association
OF Securities Dealers. the other two
principal trade bodies of the busi-
ness, representing, respectively, the
Securities Underwriters and the
counter trade.
High light of the proceedings was
proposal by SEC Chairman GAN
son Purcell that the securities busi-
ness and the commission in the near
future institute some form of con-
tinuing joint exploration of the
problems which confront both of us
from time to time. ="
Purcell said the stresses of war
made cooperation especially impor-
tant now.
Common Problems Faced.
Things to be explored for the fu-
ture, he said, included "the problems
of strengthening and maintaining
this (financiaD machinery for its
use after the war; how to control
and direct the flow of capital for the
efficient prosecution of the war and
/ the effective reconstruction of the
wreckage created by it and, more
| generally, the protection and pres
ervation of a sound capitalistic
economy"
Original conciliatory note in the
/ flow of harmony had come in the
opening address of James F. Burns,
jr, president of the association,
when he offered full cooperation to
the Commission on Joint War and
Postwar Problems, and the chord
was completed when Schram ac-
cepted the Purcell proposals of CO.
operation.
Schram broke further with recent
Wall Street ideas in a speech In
L which he %0
! hungry bankers and brokers a re-
vival in the capital markets prob
ably earlier than many of us expect"
And Schram, credited by many of
his fellow -financiers with the best
ear to the ground for Washington
developments of any man in Wall
Street, had this to add:
Il notice, in Washington perhaps
more than in Wall Street, growing
conviction that our industrial sys-
tenn, of which our free markets form
an integral part, will emerge from
this war not only with enlarged Ca
pacity and greater efficiency, but
commanding the Nations respect
and gratitude, prepared to release
new forms of progress"
Earlier Attempt Failed.
The Philadelphia meeting was not
the first attempt to'patch up rela-
tions between the Nations political
and financial capitals.
Considerable fanfare accompanied
an earlier effort to settle differences
by "round-table methods" when
James M Lands was chairman of
the commission and Young Bill"
Martin was president of the stock
exchange.
1t collapsed amid considerable
mutual recrimination.
Butcher times, other ways.
Maybe the men who think the Phila-
delphia meeting marks the start of
a new era OF good feeling have called
/ ~ S,,,.