Symptoms, Not Cause

New York Stock Exchange President Emil Schram, worried lest speculation in stocks bring down tighter federal reguation, last week spoke up in defense of Wall Street. In a speech to the Tampa, Fla. Rotary Club, Schram straightened out those who thought the booming bull market a cause of inflation. Said he: "A substantial amount of inflation has already taken place. . . . The advance in stock prices and the activity in the market are no more than symptoms of the disease."

When the Federal Reserve Board banned margin buying of securities, it knew that its action could not check inflation, said Schram. But many people mistakenly believed that the Government was taking vigorous steps to control inflation; that the stockmarket was an obstacle to such control."

If the Government meant business, what it should do, advised Schram, was to attack the basic causes of inflation. His cure: balance the federal budget, draft, program of debt retirement and change he tax laws so that capital will be channeled into productive enterprise.

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