Under the old regime, control of ihe New York Stock Exchange and with it of the New York capital market was naturally vested in the representatives of the New York private bankers because they controlled and financed American industry, As this control has been shifting since the war to the Government and to the small investor it was only logical that control of the Stock Exchange was also transferred to Washington and to the commission brokers operating all over the country.
Of real importance are the changes in the New York Stock Exchange which have not attracted any public attention. Whereas the "reorganization" of the Exchange only altered the legal forms, these unpublicised developments affect the substance and the function of the Stock Exchange itself; and they, therefore, rather than the official reorganization, concern the American.stockbroking and banking community.
The New York Stock Exchange has long been known internationally as a "gambling house." The new rules imposed by the New Deal have not altered these fundamental. character-istles; they have only improved the odds which the private gambler has against the professional who holds the bank. But the economic development of the country has been tending towards an economic structure'in which a merely speculative capital market cannot satisfy.
Text read from the printed page and cleaned; old type leaves the occasional error.