 The world's most honored watch is Laun Jean. Laun Jean watches have won 10 World's Fair Grand Prizes, 28 gold medals, and more honors for accuracy than any other timepiece. Laun Jean, the world's most honored watch, is made and guaranteed by the Laun Jean Wittner Watch Company. It's time for the Laun Jean Chronoscope, a television journal of the important issues of the hour. Brought to you every Monday, Wednesday, and Friday. A presentation of the Laun Jean Wittner Watch Company. Maker of Laun Jean, the world's most honored watch, and Wittner, distinguished companion to the world-honored Laun Jean. Good evening. May I introduce our co-editors for this edition of the Laun Jean Chronoscope. Mr. Donald R. Rogers, an editor of the New York Herald Tribune, and Mr. William Bradford Huey, editor of the American Mercury. Our distinguished guest for this evening is Mr. Edward T. McCormick, president of the New York Curve Exchange. The opinions expressed are necessarily those of the speakers. Mr. McCormick, tonight I'm sure that our audience would like to hear you talk about money and how to save some of it. Now first, sir, what is the New York Curve Exchange? Well, Mr. Huey, the New York Curve Exchange is the second largest stock exchange in the United States. It has 1,600 member and branch offices throughout the country and a ticker network of 700 machines. It provides the market for in excess of 800 corporate securities. I see. Now you have been a member of the Securities Exchange Commission and you are the manager of this big trading post. Now tonight I would like to envision one of our listeners who has a thousand or two thousand dollars a year to invest and he's interested in saving it and perhaps in making a little money out of it. Now, would you advise him to buy stocks now? I would say that everyone should not buy stocks at this time. The purchase of common stocks involves the assumption of a calculated risk and not all people in this country are in a position to assume that risk. But we would assume, Mr. McCormick, that this man has a little money to invest or to save, if you prefer to call it that. Now, do you think that the purchase of stocks is the best way to save money these days? I think that stocks should become a part of the usual individual's investment portfolio. That's assuming that he has adequate capital to invest in other forms of assets. Well, now, what in your opinion should be the first thing that a man invests in after he has a dollar that he doesn't have to spend for something to eat? I would say that the first investment should be in life insurance. Well, now, would you advise our people today to invest in life insurance? I would say that up to a certain point the individual should buy life insurance. I do not believe that after having obtained adequate protection through life insurance that he should follow the purchase of life insurance as an investment program. Now, you think that life insurance should be bought first as a protection and perhaps only as a protection? That is correct. And not as an investment, not as a way to make money? That's correct. Life insurance provides no hedge against inflation, does it, sir? Well, in view of the type of the investment programs of the insurance companies, I feel that it is not adequate for an all-round investment program. Conversely, common stock, in your opinion, does provide an inflationary hedge? I would say that after the individual has purchased sufficient life insurance and fixed income securities that he should then purchase good sound season common stocks. There's perhaps one other thing you would advise. I assume that you would advise a man who has a family to buy a home. Is this a good time for a man to buy a home? Well, Mr. Huey, it is my opinion that we are going to continue to have inflation in this country. And I think that it would be a wise thing for individuals to buy commodities. And a home is certainly a worthwhile commodity. And I feel that even today the purchase of a home would be a good investment. Now, by inflation, you mean simply that next year a dollar will be worth less than it is today. It is my opinion that the trend of inflation has not reached its peak and that we will continue to have further inflation. And if you can buy something today, it will be worth a few more dollars next year, won't it? Well, to state it conversely, it will take more dollars to buy it later on than it will now, so this is probably time to buy it. Which is probably true of the good many issues of stock, is it not, sir? That's correct. It's my feeling that having taken care of the basic investments of insurance and debt securities that you should buy common stocks and those companies that are particularly engaged in the purchase, extraction or development of commodities, metals, oils and such commodities as that, because you are indirectly through that device investing in commodities. Now, do you find a reaction among the people of America in running to common stocks to your commodities that you're selling as a hedge, as a place to hide a haven against inflation? If I understand you, are people doing that today? Yes, are more people doing it. Very decidedly, the selectivity of the market, the movement in the securities of those companies that are engaged in those types of operations clearly indicate that that is the present thinking of the investors. How about the volume? Are more people trading in securities today than before? Well, very definitely. Of course, I think that the character of the securities markets has changed rather markedly in recent years. I feel that people are now buying the whole stocks. The participation of the professionals in the market has diminished very, very considerably. There's less speculation, in other words. That is correct. Or to be vulgar, less gambling. That is correct. Today, a $10,000 investment that goes into General Motors is apt to stay in General Motors for a considerable period, whereas more typically in the earlier years of the 29s and the early 30s, the $10,000 may have been in and out of the market a number of times. All right. Now, Mr. McCormick, the enemies of our system, our capitalistic system, say that the stock exchanges serve no purpose. Now, I know it's customary for you to reply and for other people in the profession to reply that you help create new money, new money for expansion of all businesses and creation of new businesses. But the fact is, you've just mentioned General Motors, most of your business is trading in securities that have been on the market for a number of years. Now, what would you say to these critics of our system is your major contribution to our capitalistic system? What would you say to justify your job and your curb exchange? Well, I would say, Mr. Rogers, that the existence of an exchange market makes the purchase of securities attractive. Initially, it is the custom or the tradition in this country to float securities in what is known as the over-the-counter market. However, I feel that the acceptance of the securities by investors at that initial stage is bolstered largely by the fact that they know that after the initial distribution, they will have available an exchange market where people from one end of the country to the other can get together to buy or sell in a common market place. It gives them a chance, in other words, later on to sell what they've bought if they want to. Exactly. They have a place to go where someone wants to buy in case they want to sell and conversely. Now much has been said. Our listeners know that government, and they've heard a lot about government going into the stock business and regulating it. Now, it's true that there's been more and more government regulations since 1933, hasn't it? That's correct. And in your opinion, has that been to the good? Has government regulation had a good effect on Wall Street and stock trading? I don't believe there is any segment of the securities business that would deny the fact that the regulation that has been passed in this country has been beneficial, not only to the investors, but to the industry itself. I know of no important or responsible group in the investment banking field that would not look with considerable chagrin on any attempt to reverse or abolish those regulations. As a matter of fact, it has brought your members of the curb exchange a good deal more business, has it not? It made little people like me willing to invest in the market. There isn't the slightest doubt about it. The restoration of the confidence of the American investing public in the securities business has been advanced considerably, greatly, by the adoption of these regulations. Well, has government reduced the risk that a man with a thousand dollars takes when he goes down to Wall Street to buy something? Yes, I think he has. The government has done two things that has set up standards by which the game is played. In other words, those in the business must have certain capital behind them. They must execute transactions in a certain manner. And secondly, the other important thing is that they have required that the country be literally flooded with information about the corporations that are traded in their markets. Now, Mr. McCormick, if I understand what you've told our listeners tonight, you've told us first that you believe that dollars will be less valuable next year than they are today. That's correct. Therefore, a man with some money to invest should first protect his family with life insurance. He should try to buy a home. And then if he has some more money, he should invest it in something that's likely to be worth more dollars next year than it is this year. That's stating it very well. And I'm sure that our listeners have appreciated your being here tonight and have appreciated your advice. Thank you very much, sir. Thank you. The editorial board for this edition of the Lone Gene Chronoscope was Mr. Donald I. Rogers and Mr. William Bradford Huey. Our distinguished guest was Mr. Edward T. McCormick, president of the New York Curve Exchange. A new Lone Gene honor. The exclusive official watch for the Olympic Winter Games at Oslo in Norway is Lone Gene, the world's most honored watch. And the watch is employed will be the world famous Lone Gene Olympic Timers, which register time to a tenth or a fifth of a second. And new timing equipment recently developed in the Lone Gene Research Laboratory and made in the Lone Gene Factory, which registers time to the one hundredth of a second with the greatest accuracy ever attained. And it is worth repeating that all Lone Gene watches and timing equipment used in the Olympic Winter Games are Lone Gene conceived, Lone Gene designed, and Lone Gene manufactured. The experience which Lone Gene gains in creating watches of high precision for scientific purposes, such as the timing of the Olympic Winter Games, contributes to the perfection of all Lone Gene watches. Proof of the superiority of Lone Gene watches is found in the public honors which Lone Gene watches have won, including ten World's Fair grand prizes, twenty-eight gold medals, and more honors for accuracy than any other timepiece. So if you wish to own just about the finest watch made anywhere in the world, your choice might well be Lone Gene, the world's most honored watch. Premier product of the Lone Gene Wittner Watch Company since 1866, maker of watches of the highest character. This is Frank Knight again inviting you to be with us every Monday, Wednesday, and Friday evening at this same time for the Lone Gene Chronoscope. A television journal of the important issues of the hour, broadcast on behalf of Lone Gene, the world's most honored watch, and Wittner, distinguished companion to the world-honored Lone Gene, sold and serviced from coast to coast by more than 4,000 leading jurors who proudly display this emblem, agency for Lone Gene Wittner watches. This is the CBS television network.