Stock Exchange Reforms - a sharp critique of the Morrison Committee recommendations
A reader's letter to the editor argues that the Morrison Committee failed to grasp the real risk of the market regarding recommendations for government consent to close the exchange. The author contends that the government may commit an error of judgment in withholding sanction to close the market during bear raids, potentially demoralizing the entire market. While the committee suggests a system of margins, the author believes this may not prevent speculation and could create many complications. Instead, a better system for averting crisis is to vest brokers with lawful powers to close a client's business when the market is unfavourable. Such a change would impose a necessary check on initial transactions.
