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431 Days: Joseph P. Kennedy and the Creation of the SEC (1934-35)

Encouraging Capital

Breaking the Log Jam

Although FDR advisor Raymond Moley had suggested that he act as a pitchman for free enterprise and securities reform, Kennedy used the bully pulpit sparingly. During his first months in office, Kennedy regularly rejected speaking engagements, insisting that with his work just beginning he had little to say.

By late 1934, however, with new registration rules coming out and the capital strike still holding, Kennedy took to the dias with more frequency. Although one former official claimed that Kennedy and Landis "packed their suitcases like traveling salesmen," by modern standards neither man traveled extensively during these months--both were too busy with the affairs of the now four-man Commission.

But in speeches in Boston, Chicago, and New York, Kennedy did his best to sell the SEC. In New York, he urged businessmen to put aside their fears of unreasonable regulation--"why conjure up legislative monstrosities that will never see the statute books?" he asked. In Chicago he offered businessmen an olive branch--"Come down to Washington in person and present your problems to us," he said.

Executives of one major Chicago corporation did just that. On March 7, 1935, packing giant Swift and Company registered a $43 million bond issue after the Commission exempted the firm from any action resulting from an earlier effort to make a private issue. Kennedy delighted in comparing Swift's 59-page registration statement with the 2,000-page document provided by Republic Steel to the FTC.

"Swift's Bond Issue Ends Security Jam," the New York Times announced. Two days later Pacific Gas and Electric made a $45 million issue, and the value and number of new issues began climbing steadily. Kennedy had achieved his goal.

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Related Museum Resources

Papers

August 9, 1934

Telegram from SEC Chairman Kennedy to John Macomber, President, First Corporation

[image] (pdf) (Courtesy of the National Archives)

November 12, 1934

Address of James M. Landis before the National Association of State Security Commissioners at New Orleans, Louisiana

[transcript] (pdf) (Courtesy of the Library of Congress)

November 15, 1934

Address of Joseph P. Kennedy to the Boston Chamber of Commerce

[transcript] (pdf) (Courtesy of the Library of Congress)

November 15, 1934

SEC Release on SEC Chairman's Address to the Boston Chamber of Commerce

[transcript] (pdf) (Courtesy of the Library of Congress)

January 19, 1935

Telegram from E.J. Townsend to Felix Frankfurter

[image] (pdf) (Courtesy of the National Archives)

January 31, 1935

Letter from Joseph P. Kennedy to A.A. Berle, Jr.

[transcript] (pdf) (with permission of the John F. Kennedy Library Foundation)

February 8, 1935

Address by SEC Chairman Kennedy at Union League Club of Chicago, Illinois

[transcript] (pdf) (Courtesy of the Library of Congress)

March 7, 1935

Form A-2 Registration by Swift and Company

[document] (pdf) (Courtesy of the National Archives)

March 8, 1935

Telegram from Pacific Gas and Electric Company on SEC Filing

[image] (pdf) (Courtesy of the National Archives)

March 11, 1935

Letter from Joseph P. Kennedy to "Jack" Carey, Hayden Stone & Co.

[transcript] (pdf) (with permission of the John F. Kennedy Library Foundation)

March 19, 1935

Address by SEC Chairman Kennedy before American Arbitration Association, New York City

[transcript] (pdf) (Courtesy of the Library of Congress)

March 19, 1935

SEC Release on American Arbitration Association Speech

[transcript] (pdf) (Courtesy of the Library of Congress)

March 19, 1935

Telegram from E.J. Townsend and all to Joseph P. Kennedy

[image] (pdf) (Courtesy of the National Archives)

March 27, 1935

Approval of Pacific Gas and Electric Company Filing of Amendments to Registration Statement

[document] (pdf) (Courtesy of the National Archives)

March 27, 1935

Approval of Swift and Company Filing of Amendments to Registration Statement

[document] (pdf) (Courtesy of the National Archives)

April 11, 1935

Memo from Thomas Gammack to Mr. Kennedy

[transcript] (pdf) (with permission of the John F. Kennedy Library Foundation)

1934-1935

New Securities Issued During the First Year of the Securities and Exchange Commission

[document] (pdf) (from the First and Second SEC Annual Reports)