STOCK EXCHANGE VIRTUE.

New Zealand Times, Volume XXXIII, Issue 5319, 13 April 1878, Page 1 (Supplement)

STOCK EXCHANGE VIRTUE.

(Prom the World.)

f Little as the public seem likely to benefit i by the Commission of Inquiry into the con- ; stitutiou and rules of the Stock Exchange, now sitting with closed doors, the committee of the venerable <r Aisatia” have been giving signs of nervous susceptibility. Whether or not they apprehend that their monopoly may be interfered with and the powers and privileges of their imperlum in imperio curtailed, or whether they are really penitent for the past when they see what a mass of misery has been brought upon society through the doubtful practices that were long winked at, who shall say ? Let us not too closely spy into motives, but welcome symptoms of reform, and grant that a locus penitential may possibly be found even for so great a sinner. But if the institution is to escape condign punishment for its numerous Idches in bygone days, it must bring fruits meet for repentance. Its virtue must be permanent and systematic, not fitful ' and uncertain. We doubt if this will be found to be the case. A few months ago considerable excitement was caused in city circles fay. the knowledge that a respectable member of the exchange had been called before the committee to answer the charge of having acted in the twofold capacity of *• broker” and “dealer.” To avoid the risk of expulsion lie withdrew, and now seeks his remedy against the committee by an action at law. The question will therefore be fully investigated, and we shall not iu these circumstances discuss the or os aud cons. Another sign of tardy virtue on the part of the committee, now the subject of gossip, is the alleged refusal to give—or, at least, the delay iu giving—a quotation for two American loans, one Federal aud the other railway, until the lists of the subscribers are forthcoming. The evidence given before the Foreign Loans Commission showed that the committee were responsible for a great deal of the loss and misery induced in consequence of having been too ready to allow quotations. Perhaps they are beginning to tremble for the possible consequences of such acts. The French Court •of Cassation has confirmed the judgment by which the Paris syndicate of Agents de Change was declared responsible for a portion of the losses incurred by the Transcontinental railway bondholders. The Swiss Credit Foucier Company has, therefore, now instituted like proceedings to render the syndicate liable for having unduly given a quotation to those securities. If they establish their claim, it will be a very serious.matter for the syndicate of Agents de Change. Possibly our own Stock Exchange Committee are afraid of similar proceedings, and are therefore acting more carefully than formerly, though to do so now is rather like locking the stable-door when the steed has been stolen. As, however, they are iu the way of applying the besom of reform, there is one little, irregularity that ought to be attended to forthwith. How far is it right for a broker to act as agent or “ correspondent” for companies whose securities are largely dealt iu on the Stock Exchange? Can it be right that he should be made the recipient of early information which he may use—whether he does or does not is not here to the point—for his own purposes or those of his clients ? There is, for instance, one highly respectable broker who is a shining light in Capel-courb, and is supposed to be iu a position to get early information with: regard to American railway securities. He is. on several “ Reorganisation Committees,” and: 5* believed to obtain exclusive information in consequence ; a soft impeachment which ho fosters by the air of self-satisfied complacency with which he smirks his way along, evoking general envy in the soft bosoms of other denizens of Capel-court. Whether he uses his information for the benefit of either himself or his clients, or whether he has any to use, we know not: but for his own sake it is not desirable that. he. should-be-.liable to the suspicion, and we think the committee might turn their attention to his case.