Today in Washington

Washington, February 28.

Federal control of stock exchanges and federal control of the issuance of securities probably will be vested in a single commission. Whether it will be the Federal Trade Commission or a new agency not yet been decided.

The present law, which gives the Federal Trade Commission certain regulatory power over the sale and distribution of securities, may be amended to include supervision of stock exchanges and in this way much of the machinery already set up for the control of security sales will be utilized to take care of stock exchange transactions.

The consolidation of these two tasks--security insurance and stock exchange transactions--is in process of being consummated. It will present an opportunity for clarification of certain ambiguous provisions in the present law and for the removal of clauses that are believed to be holding back the revival of capital markets generally.

The fight of the stock exchanges against drastic regulation has begun. It extends to the companies and corporations whose securities are listed on the exchanges. In a broad sense the proposed bill and the existing law taken together furnish the leverage for the most comprehensive control of business which has been projected under the New Deal.

The question of whether all business shall be regulated and supervised by Government Bureaus and Commissions is one that may involve differing viewpoints but there will be no dissent from the proposition that expert personnel shall be employed in the administration of these new laws. For this reason it is significant that in the proposed stock exchange control bill, the proponents of the act are asking that the measure be exempt from the usual civil service requirements and that salaries up to $15,000 be paid. The next thing of course is to find some effective way to keep the Senators and Representatives from asking that their friends be appointed to these expert positions so that the commissions in charge can really have experts.

The Congress has been rather parsimonious about appropriating money for the Federal Trade Commission. It has had less than $250,000 with which to administer the securities law. It is getting an increased appropriation now. Some of the State Security commissions have more money given them for administration than the Federal Government gives the Trade Commision here.

Looking into the future, the Federal Trade Commission is bound to become one of the most important institutions in the National Capital. It may have to use an entirely new building to house its several divisions. One plan under consideration is to enlarge the commision by adding at least two more members and then dividing it into groups so that each group of commissioners will have direct charge of certain activities.

Incidentally, the NRA in looking toward permanent plans for administering the National Industrial Recovery Act has in mind transferring complaints and appeals to the Trade Commission, so it looks as if the latter will some day be known as the Federal Commission to Regulate Business and Finance. It is not intended that the Commission shall be subject to the orders of the President but that it should be quasijudicial and responsible only to Congress, though, of course, the commissioners will continue to be appointed by the President with the advice of the Senate.