Business Regulation
"It is Congress’ continuing responsibility to evaluate the operations of the markets in light of the policy objectives of our Federal securities laws. . . . The first goal is to provide a fair and honest mechanism for the pricing of securities, free from manipulative and deceptive practices of all kinds; The second is to prevent undue advantages or preferences among participants in the markets; The third is to insure that securities can be purchased and sold at economically efficient transactions costs. And the fourth is to maintain, to the maximum degree practicable, markets that are open, orderly, and fair. . . . We need less, not more, regulation. And that means more reliance on natural economic forces. Of course, federal regulation, including self-regulation through the exchanges and the NASD, remains necessary in order to insure that the markets operate in accord with these fundamental goals." Harrison A. Williams, Jr., Remarks to the American Institute of Certified Public Accountants, 9 January 1974.
Seeking the middle ground between the radical left’s condemnation of capitalism and the conservative right’s unqualified celebration of it, liberalism embraced the fundamental place of private enterprise in America while attempting through regulation to prevent abuses. As chairman of the Subcommittee on Securities and as a member of committees responsible for banking and small business, Williams participated in this balancing act at the very heart of American capitalism. His regulatory legislation sought to create confidence on the part of all participants—consumers, producers, investors, entrepreneurs, and intermediaries—in the integrity and stability of the marketplace. Full disclosure of information essential to informed choices, avoidance of conflicts of interest, transparent transaction terms and executions, and government agency oversight were among the regulatory tools favored by Williams to eliminate predatory practices and fraud while retaining competition, profit incentives, and risk-taking.
Cover of "Hearings before the Subcommittee on Securities of the Committee on Banking and Currency on S. 275, Interstate Land Sales Full Disclosure Act of 1967,” 28 February and 1 March 1967.
Misrepresentations in the sale of land, often involving the defrauding of senior citizens believing they were buying retirement homes in pleasant developments, led to the passage of Williams's bill establishing federal registration and disclosure requirements for large subdivisions.
Letter, William S. Simpson to Harrison Williams, 29 July 1968.
Simpson, President of Raybestos-Manhattan, Inc., expressed support for the "Williams Act," the equity ownership disclosure bill that remains an important part of securities market regulation. Williams's bill was advanced in response to an increase in corporate takeover attempts. His bill did not attempt to prevent takeovers, but required disclosures, minimum offering periods, and other measures aimed at ensuring that market participants could respond to takeover efforts in an informed and orderly fashion.
Photograph, Jackie Robinson with Harrison Williams at hearings on the impact of franchising on small business, 20 January 1970.
Business franchising became a common, and growing, feature of the marketplace in the 1960s. With relatively little capital, an individual could open their own business, a particularly attractive option for minority businessmen and women with little access to capital. Nevertheless, with new business growth came reports of deceptive and fraudulent abuses, including the use of celebrity names like New York Jets quarterback Joe Namath, talk show host Johnny Carson, and others to lure prospective franchisees into poor business decisions. One such celebrity that lent his name to a franchise operation was former baseball player Jackie Robinson, who testified at hearings conducted by Williams on possible regulation. Williams's legislative proposals for Federal Trade Commission (FTC) regulatory action were not enacted, but eventually the FTC acted on its own initiative
News from the office of: Senator Harrison A. Williams Jr., [No.] 72-22: “Williams releases securities study which ‘is first step in development of new regulatory structure’ for industry,’” 8 February 1972.
Fundamental changes impacting Wall Street financial firms in the 1970s, including the elimination of fixed commissions, were advocated by Williams and were the subject of hearings, studies, and legislation from his Subcommittee on Securities.
Photograph, Business Opportunity Conference, May 1976.
Williams and other members of the New Jersey congressional delegation worked to connect businesses with government services and contract possibilities. One such initiative was the Northern New Jersey Business Opportunity Conference, held in Newark, NJ. (Photo credit: Federal Aviation Administration, National Aviation Facilities Experimental Center.)