OVERSELLING.

Dominion, Volume 5, Issue 1392, 19 March 1912, Page 4

OVERSELLING.

VIEWS OF AUCKLAND BROKERS. (By Telcßraph.-Spcriol Correspondent.) ~ Auckland, March 18./' With respect to certain adverse criticism ou the Auckland Stock Excliange method? made by the Christchurcli "Press," a reporter conversed with several loeni brokers on Hie luat'er. The criticism referred to was specially directed against overselling, and it was suggested in the article that a conference of leading brokers should propose much-needed amendments in the law. There seems tc be much diversify among the brokers iu regard to the question ol overselling, some considering that overselling is an evil, and that an effort should bo made to stamp it out by law, while others consider that there is nothing illegitimate about overselling - .

One well-known broker emphatically declared against the Government intervening, "for," he said, "Iho Government, iu its endeavour to put things right, invariably introduced a hit of unworkable rules. As a matter of fact," he continued, "no workable law could bo made against overselling. The great thing wanted here to balance matters is *bul s' in the market, to keep (lie 'bears' ' 1 check. If a few yootl paying clitiins were brought to light there would bo little morn heard of overselling." Ho concluded by stating that there was nothing illegitimate about overselling, although overselling was absolutely disastrous when there were no "bulls" ou tho market.

Another broker referred to tho "Press" article as "too ridiculous for -words." 'L'hii:'i(lea,tliat the Auckland market could

"bear" Waihi shares by overselling, and so bleed the investing public was untenable. The ■ price of Wnihi shares was ruled from the Home market, where tho first information from (he mino was usually available. It would require exceptionally heavy selling in the local market to have any appreciable effect on the I.omlnn market. In regard to the matter of overselling, this broker considered that there should be jobbing brokers recognised as well as the legitimate brokers, and this would prove a protection for the public when seeking information.

A third broker was pinplintic about the evils of overselling. He was of opinion thai (ho Government should pass a simple Act making it criminal to oversell. There would bo always some overselling, but such an Act would curb the practice. To a largo extent, overselling was absolutely killing public interest in mining, and thin was a bad thing for the industry. Tlio general impression among the brokers interviewed ivas that persons outside the Exchango were responsible for most of the overselling, although lh« members of the Stock Exchange got the blnnic.