"NEW CHALLENGES FOR THE SECURITIES INDUSTRY"
THE OPENING PAGES OF THIS SPEECH AND OTHERS, GIVING A PERSONAL IMPRESSION OF RAY GARRETT, JR., HAVE BEEN GRACIOUSLY PROVIDED BY HARVEY L. PITT.

An Address by
Ray Garrett, Jr., Chairman
Securities and Exchange Commission

Presented before
THE INVESTMENT ASSOCIATION
Waldorf Astoria
October 3, 1973
New York, New York

One of the hazards of my present job, I have discovered, is the temptation to accept speaking engagements both too soon and too close together. When I used to watch my predecessors from my comfortable quarters in Chicago, I made a resolve with respect to each one of them that if I ever became Chairman of the SEC, I would not be running around talking so much -- especially before I had anything to say. Resistance to pleasant temptation, however, is not one of my stronger traits, and I find that I am as guilty as the rest of them.

It isn't just the temptation to talk too much that is dangerous. It is also the temptation to make news either through some profound policy statement or something exciting. Both of these are rather easy to do if you do not care too much about the results. With a little effort I think I can be profound once a week but to do so without being repetitive, would result in enormous confusion. It is even easier to be newsworthy by being exciting, such as through saying something very careless or stupid. So although headlines are fun, I try to avoid either too much profundity or too much carelessness. The things I have to say tonight may not strike you as newsworthy on either ground, but I do think there are some interesting things for us to be talking about.

I am told, and I can observe, that this group is somewhat younger than other collections of industry leadership, and it seems like an appropriate time to talk about the future. One of your number recently observed to me that in the securities industry short-range planning is worrying about this afternoon and long-range planning is when you worry about tomorrow or the next day. However true this might once have been, it seems clear to me that it is not true at all today. I see much evidence of long-range, constructive thought and planning, and that is what I would like to talk about.

Last September 11th, at the same time that we revealed our non-objection to the New York Stock Exchange's proposed increase in fixed minimum commission rates, we stated that we proposed to take whatever administrative action should be necessary to cause the fixed minimum commission rate system to be eliminated by April 30, 1975, with an interim step to be effected after March 31, 1974. I strongly suspect that most of the instant rejoicing at that time was directed....

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