HC Deb 14 February 1939 vol 343 cc1627-39

6.39 p.m.

Mr. Leach

I beg to move, in page 15, line 30, at the end, to insert: Provided that any such order shall not be made in respect of any such stock exchange or association unless membership thereof is granted or refused to applicants on terms and conditions approved by the Board of Trade. This Clause gives power to the Board of Trade to grant recognition to stock exchanges. The President of the Board of Trade is to be congratulated on taking legal notice of stock exchanges; that is a step forward. But nowhere in this Bill is there anything to prevent stock exchanges from continuing to be, what they are now, private unregulated bodies. A stock exchange can refuse any application for membership and give no reasons. It can, and does from time to time, act unreasonably. I am told of one stock exchange—I can give the name of the town to the right hon. Gentleman if he wishes—where the membership consists of so many questionable characters that reputable brokers decline to apply for membership. The London Stock Exchange, which I suppose is the most reputable in the country, has a clause debarring women from membership. One result of my Amendment would be to take away from the London Stock Exchange and other stock exchanges the power to blackball applicants for membership because they happen to be women. At present any stock exchange can refuse membership on any grounds it pleases, or on no grounds at all. Such arrogant power is bad enough at present, but when this Bill passes into law it will be much worse. The Bill raises the status of stock exchanges. They are given Government recognition for the first time. Any stockbroker carrying on business in a town where there is such a recognised stock exchange, of which he or she is not a member, might as well shut up shop.

I ask the President to bear in mind that he issued in April, 1937, a warning to investors, a very proper warning. That gave investors to understand that only by their taking the advice of and operating through members of stock exchanges could share-pushing frauds be brought to an end. In effect, the Board of Trade informed the public at large that outside brokers are so frequently questionable characters that they had better be left alone. In view of that advice, which probably was quite sound in the broad sense, why is the President taking no steps whatever to ensure in this Bill that stock exchanges do consist of reputable persons, and that membership is open to all qualified and reputable applicants? There is a case in my own city of a competent and qualified broker against whom no objection of any kind has ever been alleged except that she is a woman, yet she has, for that objection, been refused membership of the Bradford Stock Exchange. This insuperable barrier threatened her livelihood, and, in order to overcome it, she took in as partner a man. The male partner thereupon applied for membership of the Bradford Stock Exchange, but, owing to the circumstances of the case, the woman being head of the firm, he too was refused membership. There is nothing in this Bill to prevent that process going on indefinitely. There is perfect freedom in the hands of all stock exchanges to say "Yes" or "No" to all applicants for membership. The House, I hope, will see that if this Bill passes without incorporating this Amendment, these people are facing very early ruin.

It may be urged that the individual licensing of stockbrokers provided in this Bill will give them status enough, but I am sure that the President of the Board of Trade will not make any such claims. He has told the investor to deal only with members of a stock exchange. When this Bill passes, investors themselves will look more askance than ever they did before at outside brokers. They will note that the Government have granted the hallmark of recognition to the stock exchange. They will be sure that any practising broker who remains outside must be eccentric and probably a "wrong 'un." They will note that the Government have licensed him to deal with stocks and shares, but that his competent peers, who know much more about him than the Board of Trade can know, have declined to endorse it.

The law in regard to private corporations, trade unions and other associations has of late years been very considerably tightened up. A trade union seeking to refuse membership to a properly qualified applicant might very conceivably be indicted for conspiracy to deprive a person of his livelihood. I do not know of any "association of dealers" or "body of persons"—these are quotations from Clause 12 as to what the stock exchanges are to consist of—recognised in law who have full and perfectly unfettered freedom to deal with the membership by application exactly as they please. Whether it be the case of the doctors or the lawyers or trade unions, any unreasonable refusal of membership is conspiracy, and is actionable. I ask the right hon. Gentle-whether he knows of any legally recognised body of persons in this country possessing unlimited powers in the matter of membership rights I am glad to note, in putting this question, that he has on his side the competent Law Officers of the Crown, who will put me right on this if I happen to be wrong. If I happen to be right and the law is in that way, and there is not in existence in this country any association of people who have a legal status as an association and possess at the same time absolute freedom to do as they please about membership, is he going to create such a body to-day? I ask him not to do this thing, but to accept the Amendment which I am moving, I hope that he will see that it is a reasonable one.

6.49 p.m.

Mr. Silverman

I beg to second the Amendment.

My hon. Friend seems to have covered the ground in favour of the Amendment so admirably and completely that there is really little that I desire to add. It is, however, clear that under this Bill we are conferring upon stock exchanges a power which they have not previously had. It is true that, if a man says, "I am licensed by the Board of Trade to deal in stocks and shares and securities," such a declaration carries with it to a certain extent the stamp of respectability, but nothing like the stamp of respectability that is borne by a man who is able to say, "My competitor, Mr. X, has been licensed by the Board of Trade as a person fit to deal in securities, but I am a much more respectable person than he is because the Legislature have decided that I do not need a licence at all." He is therefore in a better position. He is in a position that is better than it was before, and he has an advantage over other competitors in the same field. No doubt such an association as a stock exchange might, if its rules are subject to no supervision and if they require no approval from the Board of Trade, easily make themselves a close corporation so as to restrict the amount of competition in the business.

It would be wrong in principle for the Legislature to confer rights on associations of persons to the detriment of their competitors without taking to themselves the power to see that they do not become close corporations, using the privileges which the legislature has conferred upon them in order to obtain a complete and conclusive advantage all through. As my hon. Friend the Member for Central Bradford (Mr. Leach) quite rightly said, there are other bodies which have the right to determine who shall or shall not practise in certain professions. There are the General Medical Council, the Law Society and the various Inns of Court. What may be true of the last of these I am not quite sure, but certainly in the profession of solicitor the Law Society is bound to exercise its powers in accordance with legislation and the provisions laid down in the same legislation that gives it the exclusive power. If they are to be close corporations they should not be so constituted as to use their powers unfairly or to be the means of deriving some advantage to themselves. If it is clear, as I submit it must be, that under this Bill the stock exchanges are given powers greater than the powers of those trading against them in the same field, it is right that the Board of Trade should take powers to see that these rights are not selfishly or narrowly exercised.

6.52 p.m.

Mrs. Tate

I should like to thank the hon. Member for Central Bradford (Mr. Leach) for having brought forward this Amendment. It is a point of very great substance that a stock exchange has rights which it exercises in a manner such as no other corporation or body in these days would exercise. It is true that if this Amendment were accepted it would rest in the hands of the President of the Board of Trade as to what rules and regulations he would lay down in admitting persons to the stock exchange, but as he is known for his aggressive spirit one cannot doubt that we should have the present disabilities removed. It is high time that women had the power of becoming members of a stock exchange, and I believe that it would be to the benefit of the whole country were they so to do. On every occasion when we have a crisis the first thing we hear is that there is a panic on the stock exchanges, and that the spirit in the country is one of calm. Therefore, the country being mainly composed of women, they would have a very beneficial influence if they were admitted to the stock exchanges. Then we might see less panic and a greater spirit of calm. I beg to support the Amendment.

6.54 p.m.

Miss Horsbrugh

I think that the argument was put by the hon. Member for Nelson and Colne (Mr. Silverman) in such a way that every hon. Member in this House must almost agree with it, and many may agree with it entirely. If we had not the legislation that is now before us and if there was no Government interference, control or assistance, I could quite see that the Stock Exchange would have the right to regulate its own affairs. But it has been pointed out that we are getting to the stage when the Board of Trade has definite control and is helping the interests of one set of persons trading against the interests of others. I feel that once the Government take any share in the control of any business of this sort these barriers must go. Private people can keep their barriers. That does not matter in the very least. A great many businesses which are properly run probably may, in some cases, exclude women as members of those businesses—that is entirely their own account—but when it comes to a scheme such as this, where there is Government control no close corporation should be set up with rules giving the right to exclude people, unless they are not able to do the work. The time has gone when they should have the power to exclude someone because of sex, and neither this nor any Government to-day can stand for such exclusion.

6.56 p.m.

Mr. Cross

The hon. Member for Central Bradford (Mr. Leach) based a part of his argument upon some advice which was given by my right hon. Friend before this Bill was drafted, to the effect that people would be well advised to deal with stockbrokers.

Mr. Leach

Stock exchanges.

Mr. Cross

I would point out to the hon. Member that the argument in that connection will fail with the passage of this Bill. That advice was previous to this Bill, and when this Bill is passed it will become an anachronism, because after that there will be a number of additional classes of persons, whom my right hon. Friend, I am sure, will be willing to name with stockbrokers in any further advice he may be called upon to give. The hon. Member who moved the Amendment showed that he appreciated fully that it would be under this Bill obligatory on the Board of Trade to investigate and maybe to approve the rules of the stock exchanges and of associations of dealers, but he did not, apparently, appreciate that the concern of the Board of Trade in so doing would be to have regard to all factors which are connected with the prevention of fraud, which is the main purpose of the Bill. The Amendment is not concerned, and the hon. Member did not claim that it was, with the prevention of fraud, but it requires the Board of Trade to have regard to a number of matters which are not connected with any suggestion of fraud whatever. I suggest to the hon. Member, therefore, that his Amendment really lies outside the main purpose of the Bill, which is to prevent fraud.

Mr. Leach

Why is the right hon. Gentleman recognising the stock exchanges at all?

Mr. Cross

We propose to recognise stock exchanges because we believe that certain stock exchanges, if not all of them, are bodies which, upon investigation, we shall find are of such a responsible character that they can be entrusted with the task of preventing fraud among their members. The concern of the Board of Trade consequently is to examine the rules and their enforcement from the point of view of whether the stock exchanges would be fitting objects for recognition. It follows that the Board of Trade in its examination must be concerned with the question of whether the rules embody a suitable and adequate code of discipline for their members, and, more important still, whether the code of discipline is actually enforced.

They must be satisfied, moreover, that the governing body would be exercising every proper care as to the admission only of people of good character and the exclusion of people of doubtful reputation. These and all similar matters fall to be considered by the Board of Trade when considering whether a particular stock exchange can or cannot be recognised. Questions as to the class or the sex of the persons are wholly irrelevant to the question of preventing fraud. In that connection the hon. Member did not recognise that the ladies that he has in mind would, at all events, be eligible for joining an association of outside dealers. The sex of the member is surely irrelevant. We are not debating the suggestion that men are more honest than women, or women than men. That is beside the point. But if by the Bill stock exchanges are to be authorised, by their own methods, to prevent fraud among their members, it would be absurd not to leave to them the minor task of determining what types or classes of persons should be eligible for membership.

I would go a little further and oppose the Amendment on principle, on the very ground that the hon. Member mentioned when he started his speech. These are private institutions. They are, as he said, like a private club and, like a private club, they should be allowed to continue without interference with their liberty, provided they are properly conducted. This is a grievance which existed long before the Bill was in draft. I well understand the hon. Member and the hon. Lady seeking an opportunity of giving it an airing. That is a thing which we all do when we get the opportunity. I hope they will recognise that the Amendment is not necessary to the prevention of fraud, which is the main purpose of the Bill.

Mr. Silverman

On a point of Order. I thought this possibly might have been raised by one of the ladies who spoke. A year or two ago the House passed a sex disqualification removal Act, which was intended to provide that no citizen should be debarred from holding public offices or enjoying privileges by reason only of her sex. Apparently the Bill will confer exclusive privileges upon bodies which have in their constitution Clauses that are in conflict with the principle of that Act, and, if that is so, I submit that a point of order arises, unless the Act is to be, for the purposes of this Act, explicitly repealed.

Mr. Speaker

I have not had any views of that kind in mind. I had my doubts whether it was within the scope of the Bill. I thought the hon. Member had an idea that the presence of women on the stock exchanges or associations would be likely to prevent fraud, which, after all, is the object of the Bill.

7.4 p.m.

Mr. Johnston

It would be rather unfortunate if this Amendment were considered solely as a sex Amendment. My hon. Friend has said that the Bradford and London Stock Exchanges have debarred women from membership, and under the Bill stock exchanges are given what they have never had before—State recognition. But there are other instances where stock exchange corporations have used their powers arbitrarily. Surely there is nothing unreasonable, on an Amendment which does not say anything specific about sex discrimination, in asking the President of the Board of Trade to take powers, when he is licensing stock exchanges, or giving them authorisation to deal in securities, to say to them, "You shall be recognised only if you conform to certain public standards of equity which Parliament and the general public expect." I am not suggesting at all that any particular action should compel his acceptance of a stock exchange—that would be unreasonable and foolish—but if stock exchanges, as now constituted, are becoming close corporations, such as the old municipal boroughs were prior to the Municipal Corporations Act, I am certain that this House would wish to take advantage of a very convenient and useful opportunity to enable the President of the Board of Trade to put these corporations a little bit in their place. I hope my hon. Friends who have brought the Amendment forward will persist with it.

Question put, "That those words be there inserted in the Bill."

The House divided: Ayes, 104: Noes, 180.

Division No. 34.] AYES. [3.50 p.m.
Adams, S. V. T. (Leeds, W.) Dodd, J. S. Herbert, Major J. A. (Monmouth)
Albery, Sir Irving Doland, G. F. Higgs, W. F.
Anderson, Sir A. Garrett (C. of Ldn.) Dorman-Smith. Col. Rt. Hon. Sir R. H. Hoare, Rt. Hon. Sir S.
Aske, Sir R. W. Dower, Lieut.-Col. A. V. G. Holmes, J. S.
Astor, Hon. W. W. (Fulham, E.) Drewe, C. Hore-Belisha, Rt. Hon. L.
Baldwin-Webb, Col. J. Duckworth, Arthur (Shrewsbury) Horsbrugh, Florence
Berelay-Harvey, Sir C. M. Duggan, H. J. Howitt, Dr. A. B.
Barrie, Sir C. C. Duncan, J. A. L. Hudson, Capt. A. U. M. (Hack., N.)
Beamish, Rear-Admiral T. P. H. Dunglass, Lord Hume, Sir G. H.
Beaumont, Hon. R. E. B. (Portsm'h) Eastwood, J. F. Hunloke, H. P.
Blair, Sir R. Eden, Rt. Hon. A. Hunter, T.
Boulton, W. W. Ellis, Sir G. Hurd, Sir P. A.
Boyce, H. Leslie Emery, J. F. Inskip, Rt. Hon. Sir T. W. H.
Briscoe, Capt. R. G. Evans, D. O. (Cardigan) James, Wing-Commander A. W. H.
Broadbridge, Sir G. T. Fleming, E. L. Joel, D. J. B.
Brocklebank, Sir Edmund Foot, D. M. Jones, Sir H. Haydn (Merioneth)
Brooke, H. (Lewisham, W.) Fox, Sir G. W. G. Keeling, E. H.
Brown, Rt. Hon. E. (Leith) Furness, S. N. Kerr, Colonel C. I. (Montrose)
Browne, A. C. (Belfast, W.) Fyfe, D. P. M. Kerr, H. W. (Oldham)
Bullock, Capt. M. George, Major G. Lloyd (Pembroke) Kerr, J. Graham (Scottish Univs.)
Burton, Col. H. W. George, Megan Lloyd (Anglesey) Keyes, Admiral of the Fleet Sir R.
Butcher, H. W. Gilmour, Lt.-Gol. Rt. Hon. Sir J. Kimball, L
Cartland, J. R. H. Gluckstein, L. H. Knox, Major-General Sir A. W. F.
Cary, R. A. Glyn, Major Sir R. G. C. Lamb, Sir J. Q.
Castlereagh, Viscount Goldie, N. B. Lambert, Rt. Hon. G.
Cayzer, Sir C. W. (City of Chester) Gower, Sir R. V. Lancaster, Captain C. G.
Cazalet, Thelma (Islington, E.) Graham, Captain A. C. (Wirral) Leigh, Sir J.
Chamberlain, Rt. Hn. N. (Edgb't'n) Grant-Ferris, R. Lennox-Boyd, A. T. L.
Channon, H. Granville, E. L. Liddall, W. S.
Chorlton, A. E. L. Gretton Col. Rt. Hon. J. Lindsay, K. M.
Christie, J. A. Gridley, Sir A. B. Lipson, D. L.
Clarke, Colonel R. S. (E. Grinstead) Griffith, F. Kingsley (M'ddl'sbro, W.) Llewellin, Colonel J. J.
Clarry, Sir Reginald Grigg, Sir E. W. M. Lloyd, G. W.
Clydesdale, Marquess of Grimston, R. V. Looker-Lampsan, Comdr. O. S.
Cobb, Captain E. C. (Preston) Guinness, T. L. E. B. Loftus. P. C.
Conant, Captain R. J. E. Hambro, A. V. Mabane, W. (Huddersfield)
Cooper, Rt. Hn. A. Duff (W'st'r S. G'gs) Hammersley, S. S. M'Connell, Sir J.
Courthope, Col. Rt. Hon. Sir G. L. Hannah, I. C. Macdonald, Capt. P. (Isle of Wight)
Cox, Trevor Harbord, A. McEwen, Capt. J. H. F.
Cross, R. H. Harris, Sir P. A. McKie, J. H.
Crowder, J. F. E. Harvey, Sir G. Macnamara, Lt.-Col. J. R. J.
Davidson, Viscountess Harvey, T. E. (Eng. Univ's.) Magnay, T.
Davies, Major Sir G. F. (Yeovil) Haslam, Henry (Horncastle) Makins, Brig.-Gen. Sir E.
Davison, Sir W. H. Haslam, Sir J. (Balton) Mander, G. le M.
De Chair, S. S. Heilgers, Captain F. F. A. Manningham-Buller, Sir M.
De la Bère, R. Hely-Hutchinson, M. R. Margesson, Capt. Rt. Hon. H. D. R.
Denman, Hon. R. D. Heneage, Lieut.-Colonel A. P. Markham, S. F.
Denville, Alfred Hepburn, P. G. T. Buchan- Marsden, Commander A.
Maxwell, Hon. S. A. Royds, Admiral Sir P. M. R. Stuart, Hon. J. (Moray and Nairn)
Mayhew, Lt.-Col. J. Ruggles-Brise, Colonel Sir E. A. Sueter, Rear-Admiral Sir M. F.
Medlicott, F. Russell, Sir Alexander Sutcliffe, H.
Meller, Sir R. J. (Mitcham) Russell, S. H. M. (Darwen) Tate, Mavis C.
Mills, Sir F. (Leyton, E.) Salmon, Sir I. Taylor, C. S. (Eastbourne)
Mitchell, H. (Brentford and Chiswick) Salt, E. W. Taylor, Vice-Adm. E. A. (Padd, S.)
Mitchell, Sir W. Lane (Streatham) Salter, Sir J. Arthur (Oxford U.) Thorneycroft, G. E. P.
Morgan, R. H. (Worcester, Stourbridge) Samuel, M. R. A. Touche, G. C.
Morris-Jones, Sir Henry Sandeman, Sir N. S. Train, Sir J.
Morrison, G. A. (Scottish Univ's.) Sandys, E. D. Tree, A. R. L. F.
Muirhead, Lt.-Col. A. J. Sassoon, Rt. Hon. Sir P. Tufnell, Lieut.-Commander R. L.
Nicolson, Hon. H. G. Scott, Lord William Turton, R. H.
O'Neill, Rt. Hon. Sir Hugh Seely, Sir H. M. Walker-Smith, Sir J.
Peake, O. Selley, H. R. Wallace, Capt. Rt. Hon. Evan
Perkins, W. R. D. Shakespeare, G. H Ward, Lieut.-Col. Sir A. L. (Hull)
Petherick, M. Shaw, Captain W. T. (Forfar) Ward, Irene M. B. (Wallsend)
Pickthorn, K. W. M. Shepperson, Sir E. W. Wardlaw-Milne, Sir J. S.
Pilkington, R. Shute, Colonel Sir J. J Warrender, Sir V.
Ponsonby, Col. C. E. Simon, Rt. Hon. Sir J. A. Waterhouse, Captain C.
Ramsbotham, H. Sinclair, Rt. Hon. Sir A. (C'thn's) Watt, Major G. S. Harvie
Ramsden, Sir E. Sinclair, Col. T. (Queen's U. B'lf'st) Wedderburn, H. J. S.
Rathbone, Eleanor (English Univ's.) Smiles, Lieut.-Colonel Sir W. D. Wells, Sir Sydney
Rathbone, J. R. (Bodmin) Smith, Bracewell (Dulwich) White, H. Graham
Rayner, Major R. H. Smith, Sir Louis (Hallam) Whiteley, Major J. P. (Buckingham)
Read, A. C. (Exeter) Smithers, Sir W. Williams, C. (Torquay)
Read, Sir H. S. (Aylesbury) Somerset, T. Williams, H. G. (Croydon, S.)
Reid, Sir D. D. (Down) Somervell, Rt. Hon. Sir Donald Willoughby de Eresby, Lord
Reid, J. S. C. (Hillhead) Somerville, A. A. (Windsor) Wilson, Lt.-Col. Sir A. T. (Hitchin)
Rickards, G. W. (Skipton) Southby, Commander Sir A. R. J. Windsor-Clive, Lieut.-Colonel G.
Roberts, W. (Cumberland, N.) Spears, Brigadier-General E. L. Wood, Hon. C. I. C.
Robinson, J. R. (Blackpool) Spens, W. P. Wragg, H.
Rosbotham, Sir T. Stanley, Rt. Hon. Oliver (W'm'ld) Wright, Wing-commander J. A. C.
Ross, Major Sir R. D. (Londonderry) Stewart, J. Henderson (Fife, E.) Young, A, S. L. (Partick)
Ross Taylor, W. (Woodbridge) Stewart, William J. (Belfast, S.)
Rothschild, J. A. de Stourton, Major Hon. J. J. TELLERS FOR THE AYES.—
Rowlands. G. Strickland, Captain W. F. Captain Dugdale and Mr. Munro
NOES.
Adams, D. (Consett) Grenfell, D, R. Price, M. P.
Adams, D. M. (Poplar, S.) Griffiths, G. A. (Hemsworth) Pritt, D. N.
Adamson, Jennie L. (Dartford) Griffiths, J. (Llanelly) Robinson, W. A. (St. Helens)
Adamson, W. M. Guest, Dr. L. H. (Islington, N.) Sanders, W. S.
Alexander, Rt. Hon. A. V. (H'lsbr.) Hall, G. H. (Aberdare) Sexton, T. M.
Anderson, F. (Whitehaven) Hardle, Agnes Shinwell, E.
Attlee, Rt. Hon. C. R. Hayday, A. Silkin, L.
Banfield, J. W. Henderson, A. (Kingswinford) Silverman, S. S.
Barnes, A. J. Henderson, J. (Ardwick) Simpson, F. B.
Batey, J. Hicks, E. G. Smith, E. (Stoke)
Bellenger, F. J. Hills, A. (Pontefract) Smith, T. (Normanton)
Benn, Rt. Hon. W. W. Hopkin, D. Stephen, C.
Benson G. Jenkins, A. (Pontypool) Stewart, W. J. (H'ght'n-le-Sp'ng)
Buchanan, G. Jenkins, Sir W. (Neath) Stokes, R. R.
Charleton, H. C. John, W. Strauss, G. R. (Lambeth, N.)
Chater, D. Johnston, Rt. Hon. T. Summerskill, Dr. Edith
Cluse, W. S. Kennedy, Rt. Hon. T. Thorne, W.
Cocks, F. S. Lansbury, Rt. Hon. G. Thurtle, E.
Collindridge, F. Lathan, G. Tinker, J. J.
Daggar, G. Lawson, J. J. Tomlinson, G.
Davidson, J. J. (Maryhill) Leach, W. Viant, S. P.
Davies, R. J. (Westhoughton) Leonard, W. Watkins, F. C.
Day, H. Logan, D. G, Westwood, J.
Dobbie, W. Macdonald, G. (Ince) Whiteley, W. (Blaydon)
Dunn, E. (Rother Valley) McEntee, V. La T. Wilkinson, Ellen
Ede, J. G. Maxton, J. Williams, E. J. (Ogmore)
Edwards, Sir C. (Bedwellty) Milner, Major J. Wilson, C. H. (Attercliffe)
Fletcher, Lt.-Comdr. R. T. H. Montague, F. Windsor, W. (Hull, C.)
Frankel, D. Morrison, R. C. (Tottenham, N.) Woods, G. S. (Finsbury)
Gallacher, W. Muff, G. Young, Sir R. (Newton)
Gardner, B. W. Noel-Baker, P. J.
Garro Jones, G. M. paling, W. TELLERS FOR THE NOES.—
Green, W. H. (Deptford) Parker, J. Mr. Mathers and Mr. Groves.
Greenwood, Rt. Hon. A. Poole, C. C.

Question, "That the Clause be read a Second time," put, and agreed to.

Division No. 35.] AYES. [7.9 p.m.
Adams, D. (Consett) Harvey, T. E. (Eng. Univ's.) Poole, C. C.
Adam., D. M. (Poplar, S.) Hayday, A. Rathbone, Eleanor (English Univ's.)
Adamson, Jennie L. (Dartford) Henderson, A. (Kingswinford) Ritson, J.
Adamson, W. M. Henderson, J. (Ardwick) Roberts, W. (Cumberland, N.)
Alexander, Rt. Hon. A. V. (H'lsbr.) Hills, A. (Pontefract) Robinson, W. A. (St. Helens)
Attlee, Rt. Hon. C. R. Hopkin, D. Sanders, W. S.
Barnes, A. J. Horsbrugh, Florence Sexton, T. M.
Bellenger, F. J. Jenkins, A. (Pontypool) Shinwell, E
Benn, Rt. Hon. W. W. Jenkins, Sir W. (Neath) Silverman, S. S.
Benson G. John, W. Sinclair, Rt. Hon. Sir A. (C'thn's)
Bromfield, W. Johnston, Rt. Hon. T. Smith, E. (Stoke)
Buchanan, G. Kennedy, Rt. Hon. T. Smith, T. (Normanton)
Capo, T. Kirby, B. V. Sorenson, R. W.
Charleton, H. C. Lathan, G. Stewart, W. J. (H'ght'n-le-Sp'ng)
Cluse, W. S. Leach, W. Strauss, G. R. (Lambeth, N.)
Cocks, F. S. Leonard, W. Tale, Mavis C.
Cove, W. G. Logan, D. G. Taylor, R. J. (Morpeth)
Daggar, G. Macdonald, G. (Ince) Thorne, W.
Dalton, H. McEntee, V. La T. Thurtle, E.
Davidson, J. J. (Maryhill) McGhee, H. G. Tinker, J. J.
Dobbie, W. MacLaren, A. Tomlinson, G.
Dunn, E. (Rother Valley) Maclean, N. Viant, S. P.
Edwards, Sir C. (Bedwellty) Mander, G. la M. Watkins, F. C.
Evans, D. O. (Cardigan) Marklew, E. Welsh, J. C.
Foot, D. M. Messer, F. Westwood, J.
Gardner, B. W. Milner, Major J. Whiteley, W. (Blaydon)
Garro Jones, G. M. Montague, F. Wilkinson, Ellen
Graham, D. M. (Hamilton) Morrison, Rt. Hon. H. (Hackney, S.) Williams, E. J. (Ogmore)
Green, W. H. (Deptford) Morrison, R. C. (Tottenham, N.) Wilson, C. H. (Attercliffe)
Greenwood, Rt. Hon. A. Muff, G. Windsor, W. (Hull, C.)
Griffith, F. Kingsley (M'ddl'sbro, W.) Noel-Baker, P. J. Woods, G. S. (Finsbury)
Griffiths, G. A. (Hemsworth) Oliver, G. H. Young, Sir R. (Newton)
Griffiths, J. (Llanelly) Owen, Major G.
Groves, T. E. Paling, W. TELLERS FOR THE AYES.—
Hall, G. H. (Aberdare) Parker, J. Mr. Mathers and Mr. Anderson.
Harris, Sir P. A. Parkinson, J. A.
NOES
Acland-Troyte, Lt.-Col. G. J. Emrys-Evans, P. V. Mabane, W. (Huddersfield)
Adams, S. V. T. (Leeds, W.) Entwistle, Sir C. F. MacAndrew, Colonel Sir C. G.
Albery, Sir Irving Errington, E. M'Connell, Sir J.
Aske, Sir R. W. Fildes, Sir H. McCorquodale, M. S.
Balniel, Lord Fleming, E. L. McKie, J. H.
Barclay-Harvey, Sir C. M. Fox, Sir G. W. G. Magnay, T.
Beamish, Rear-Admiral T. P. H. Furness, S. N. Maitland, Sir Adam
Beaumont, Hon. R. E. B. (Portsm'h) Fyfe, D. P. M. Manningham-Buller, Sir M.
Beechman, N. A. Gluckstein, L. H. Margesson, Capt. Rt. Hon. H. D. R.
Boulton, W. W. Graham, Captain A. C. (Wirral) Markham, S. F.
Brown, Brig.-Gen. H. C. (Newbury) Gridley, Sir A. B. Marsden, Commander A.
Browns, A. C. (Belfast, W.) Grimston, R. V. Maxwell, Hon. S. A.
Bull, B. B. Guest, Lieut.-Colonol H. (Drake) Mayhew, Lt -Col. J.
Butcher, H. W. Guest, MaJ. Hon. O. (C'mb'rw'll, N.W.) Medlicott, F.
Campbell, Sir E. T. Guinness, T. L. E. B. Mills, Sir F. (Leyton, E.)
Cartland, J. R. H. Hambro, A. V. Mills, Major J. D. (New Forest)
Cary, R. A. Hammersley, S. S. Mitchell, H. (Brentford and Chiswick)
Chamberlain, Rt. Hn. N. (Edgb't'n) Harbord, A. Morris. J. P. (Salford, N.)
Channon, H. Haslam, Henry (Horncastle) Morris-Jones, Sir Henry
Chapman, A. (Rutherglen) Haslam, Sir J. (Bolton) Morrison, G. A. (Scottish Univ's.)
Chorlton, A. E. L. Hely-Hutchinson, M. R. Morrison, Rt. Hon. W. S. (Cirencester)
Clarke, Colonel R. S. (E. Grinstead) Heneage, Lieut.-Colonel A. P. Munro, P.
Clarry, Sir Reginald Hopburn, P. G. T. Buchan- Neven-Spence, Major B. H. H.
Cobb, Captain E. C. (Preston) Herbert, A. P. (Oxford U.) Nicolson, Hon. H. G.
Colfox, Major W. P. Higgs, W. F. O'Connor, Sir Terence J.
Conant, Captain R. J. E. Holmes, J. S. O'Neill, Rt. Hon. Sir Hugh
Cooke. J. D. (Hammersmith, S.) Hope, Captain Hon. A. O. J. Palmer, G. E. H.
Cox, Trevor Hudson, Capt. A. U. M. (Hack., N.) Peake, O.
Cross, R. H. Hunloke, H. P. Perkins, W. R. D.
Crowder, J. F. E. Hunter, T. Petherick, M.
Davies, Major Sir G. F. (Yeovil) Inskip, Rt. Hon. Sir T. W. H. Ponsonby, Col, C. E.
Da Chair, S. S. Jones, Sir G. W. H. (S'k N'w'gt'n) Porritt, R. W.
Denman, Hon. R. D. Jones, Sir H. Haydn (Merioneth) Procter, Major H. A.
Dixon, Capt. Rt. Hon. H. Keeling, E. H. Radford, E. A.
Dodd, J. S. Kerr, H. W. (Oldham) Ramsbotham, H.
Dorman-Smith, Col. Rt. Hon. Sir R. H. Kerr, J. Graham (Scottish Univs.) Ramsden, Sir E.
Drewe, C. Lamb, Sir J. Q. Rankin, Sir R.
Duckworth, Arthur (Shrewsbury) Lees-Jones, J. Rathbone, J. R. (Bodmin)
Dugdale, Captain T. L. Leighton, Major B. E. P. Reed, A. C. (Exeter)
Duncan, J. A. L. Liddall, W. S. Reid, Sir D. D. (Down)
Dunglass, Lord Lipson, D. L. Reid, J. S. C. (Hillhead)
Eastwood, J. F. Llewellin, Colonel J. J. Rickards, G. W. (Skipton)
Elliot, Rt. Hon. W. E. Lloyd, G. W. Robinson, J. R. (Blackpool)
Emery, J. F. Loftus, P. C. Rosbotham, Sir T.
Ross Taylor, W. (Woodbridge) Southby, Commander Sir A. R. J. Watt, Major G. S. Harvie
Rowlands, G. Spens, W. P. Wayland, Sir W. A.
Royds, Admiral Sir P. M. R. Stanley, Rt. Hon. Oliver (W'm'ld) Wedderburn, H. J. S.
Russell, S. H. M. (Darwen) Stewart, J. Henderson (Fife, E.) Wells, Sir Sydney
Salmon, Sir I. Strickland, Captain W. F. Whiteley, Major J. P. (Buckingham)
Salt, E. W. Stuart, Hon. J. (Moray and Nairn) Wickham, Lt.-Col. E. T. R.
Samuel, M. R. A. Sueter, Rear-Admiral Sir M. F. Williams, C. (Torquay)
Scott, Lord William Sutcliffe, H. Williams, H. G. (Croydon, S.)
Shakespeare, G. H Tasker, Sir R. I. Willoughby de Eresby, Lord
Shaw, Captain W. T. (Forfar) Taylor, C. S. (Eastbourne) Wilson, Lt.-Col. Sir A. T. (Hitchin)
Shepperson, Sir E. W. Titchfield, Marquess of Windsor-Clive, Lieut.-Colonel G.
Shute, Colonel Sir J. J. Tree, A. R. L. F. Wood, Hon. C. I. C.
Sinclair, Col. T. (Queen's U. B'lf'st) Turton, R. H. Wragg, H.
Smiles, Lieut.-Colonel Sir W. O. Wallace, Capt. Rt. Hon. Euan Young, A. S. L. (Partick)
Smith, Sir Louis (Hallam) Ward, Lieut.-Col. Sir A. L. (Hull)
Somerset, T. Warrender, Sir V. TELLERS FOR THE NOES.—
Somarville, A. A. (Windsor) Waterhouse, Captain C. Lieut.-Colonel Kerr and Major Herbert.

7.17 p.m.

Mr. Duncan

I beg to move, in page 15, line 41, after "prescribed," to insert: (which shall be not less often than once a year). The succeeding four Amendments on the Order Paper go along with this one. They deal with the same point that was dealt with on Clause 7 with regard to the publication at least once a year of a list of people concerned in this Bill. Clause 7 dealt with the holders of principals' licences. This Clause deals with exempted dealers and members of stock exchanges. I hope the Amendments will be accepted.

7.18 p.m.

Mr. Cross

We welcome this series of Amendments, which will have the effect of ensuring publication of the list of members of recognised stock exchanges and associations at least once a year. My hon. Friend put down Amendments to the same effect in regard to principals' licences, which have already been passed, and this is a further series of Amendments, which we propose to accept, in regard to exempted business and also trustees of unit trusts. These Amendments will make uniform the publication at least once a year of lists of persons authorised to deal in securities.

Amendment agreed to.

Further Amendments made:

In page 15, line 43, after "and," insert as soon as may be after receiving any list furnished to them under this Sub-section.

In page 16, line 1, after "cause," insert "the list."

In line 1, leave out "at such time and."

In line 2, leave out from "proper," to end of line 3. —[Mr. Duncan.]

7.20 p.m.

Mr. Johnston

I beg to move, in page 16, line 3, at the end, to insert: (4) It shall be the duty of every recognised stock exchange or recognised association of dealers in securities whenever required by the Board so to do to furnish to the Board, with respect to any specified member of the stock exchange or association, as the case may be, a list of persons who are for the time being authorised by that member to deal in securities on his behalf. We have just agreed that stock exchanges shall supply to the Board of Trade at certain prescribed periods lists of their members, and that these lists shall be published. The Amendment I now move is to ensure that the President of the Board of Trade shall have the right to call for the names of persons who are or may be acting as touts for particular members or particular stock exchanges. In the course of a year there may be reason to suspect that an ex-convict or an ex-share-pusher has contrived to get himself, so to speak, adopted under the wing of a registered stockbroker. Some person of doubtful antecedents, financially, may be engaged in share-pushing and getting his business transacted under the shelter of a respectable member of a stock exchange. He may be a third commission man or a half commission man.

The London Stock Exchange, in particular, engages in a system of half commission and third commission men. It allows men to act on half commission, that is, persons who may get some nominal employment with them—or it may be bankers—and gives them half commission; other persons they may regard as agents and give a third of the recognised commission. This system does not apply to some other stock exchanges. It does not apply in Glasgow, and I believe it does not apply in any of the Scottish stock exchanges, or in Manchester, but there are stock exchanges, such as London, where stockbrokers do employ agents, or, as some people call them, touts, to introduce business to them and to receive in return one-third of the stockbroker's commission.

Unless the President of the Board of Trade is to be authorised, as and when occasion warrants, to get a list of all these agents who may be acting for a particular stockbroker, the whole purpose of this part of the Act may be rendered nugatory for a considerable period. All that our Amendment asks is that the President of the Board of Trade may have the power, and to exercise it as and when he thinks proper, to call upon any member of any recognised association of dealers to supply him with a list of the persons who are acting for that particular member. I hope the right hon. Gentleman will find that there is nothing unreasonable in the Amendment. In Committee he gave us an indication, without committing himself to words, that he would look favourably upon an Amendment such as this.

Mr. Cross

The right hon. Gentleman's Amendment will give to the Board of Trade an added and very desirable power for enabling them to deal with doubtful or suspicious cases, and we shall be glad to accept the Amendment.

Amendment agreed to.