Changes Within thi e Financial Community "To the American Press the re-Organízation of the New York Stock Exchange has been one of the "stories Of the year" The decisive victory of the New Deal and of its allies within the Exchange over the "old timers" after five years of bitter strife, the coincidence of this victory with the downfall of Richard Whitney, the protagonist of the anti-New Deal forces, and the elevation of a virtually unknown very young man to the presidency of the Exchange} contained just that element of drama and of "human interest" which appeals to the American public above everything else, states the "Financial New:
Yet, little thought has been given to the economic repercussions of these changes on both the working Of the Stock Exchange and the American financial system. The new leaders of the Exchange themselves did not venture beyond the statement that the Stock Exchange has now been converted from a "private club" into a public institution. And attempts to obtain a substantiation of this vague phrase have not met with much success.
The inability of define the meaning and consequences of the Stock Exchange reorganization is not just accidental. It is due to the fact that contrary to the claims of both sides the reorganization was not really very important. It only expressed in legal terms fundamental changes within the American financial community and in the capital markets which actually have been accomplished facts for some time. The defeat of the "old timers" is but the symbol of the decline in importance which the New York international private bankers and with them New York as the financial capital of the motion have been undergoing ever since America ceased to be an importer of capital.
Text read from the printed page and cleaned; old type leaves the occasional error.