XN000022-1973-01-17 — Page 3

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Wednesday, January 17, 1973

Mr. Haddon-Cave stressed that the Government was solely concerned

to see that orderly marketing conditions prevail; and not disorderly

conditions which distort the forces of supply and demand based on

rational considerations.

"It is true that the stock market is a market," he said.

"But it is a market in paper and if the velocity of circulation of

that paper becomes Buch that it begins to be traded without regard to

its underlying worth then the conditions necessary for the conduct of

an orderly market are no longer present."

Orderly Marketing Conditions

The situation that had developed by the middle of last week

placed in jeopardy the possibility of orderly marketing conditions

prevailing, he said.

"Orderly marketing conditions continue to be our objective and

I am sure the decision by the stock exchanges, acting in concert, to limit

trading hours this week by closing for three half days and to close every

Wednesday afternoon for the time being will assist towards this objective

in the short term.

"Likewiso, I am sure that the Securities Advisory Council, which

is now holding its first meeting, will be concerned to suggest reforms in

trading practices designed to secure this objective in the longer term,"

Mr. Haddon-Cave said.

IF

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