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a condition of the very stability of society that its rules of law and of business practice recognize and protect that ordinary citizen’s dependent position

“If investor confidence is to come back . . . , the law must advance.

As a complex society so diffuses and differentiates the financial interests of the ordinary citizen that he has to trust others and cannot personally watch the managers of all his interests as one horse trader watches another, it becomes a condition of the very stability of that society that its rules of law and of business practice recognize and protect that ordinary citizen’s dependent position.

Unless constant extension of the legal conception of a fiduciary relationship — a guarantee of ’straight shooting’ — supports the constant extension of mutual confidence which is the foundation of a maturing and complicated economic system, easy liquidity of the resources in which wealth is invested is a danger rather than a prop to the stability of that system.

When everything everyone owns can be sold at once, there must be confidence not to sell. Just in proportion as it becomes more liquid and more complicated, an economic system must become more moderate, more honest, and more justifiably self-trusting…”

via Chairman of the House Committee on Interstate and Foreign Commerce, Representative Sam Rayburn, who sponsored the bill that eventually led to the passage of the 1934 Exchange Act, (H. R. Rep. No. 1383, 73d Cong., 2d Sess., 13.).. via Commissioner Elisse Walter’s transcript of her remarks at the Annual Corporate Counsel Institute… via The Harvard Law School Forum