GAMBLING IN STOCKS

Evening Star, Issue 21719, 14 May 1934, Page 9

GAMBLING IN STOCKS

AMERICAN PREVENTATIVE MEASURE BILL PASSED BY SENATE Press Association—By Telegraph—Copyright WASHINGTON, May 12. The Senate, by a vote of 62 to 13, passed the Stock Exchange Bill, thus virtually completing Congressional action on the measure, as it has already been passed by the House with the exception of some relatively unimportant amendments of a technical nature. The Bill will become law despite the almost universal protest from the stock exchanges throughout the country. New York Stock Exchange seats dropped 100,000dol ins value during the past week, when the passing of the Bill became assured. [Following the receipt of the following message from the President, “ naked speculation has been made too alluring and far too easy to those who could and. those who could not afford to gamble,” a Bill was introduced in the Congress ’ by Senator Fletcher, chairman of the Finance Committee, providing for drastic supervision of the stock exchanges of the country. The measure, which is one of 14,000 words, specifies a requirement of a 60 per cent.

margin for stock purchases or higher,

outlaws all manipulative devices, forv. bids speculation or short selling by corporation. officials in stock of tueir corporation, and provides fines up to 500,000dpi for violations. The Federal Trade Commission will control the volume of stock market credit, restrict short selling, and protect the public interest in all exchange operations.]