ABSTRACT
The arrival of boom in 1936 brought the risk that it might be accompanied by abuses such as those which had accompanied the booms of 1920 and 1928. Roderick Dew included the detailed notes kept by Bank of London of salesmen's visits to potential investors who were being persuaded to buy worthless shares. As the Royal Commission of 1878 had recognised, the simplest administrative solution to this problem involved granting the London Stock Exchange a Royal Charter and a monopoly of share trading. In 1936, marking the longevity of the scheme, the Foreign Transactions Advisory Committee was created to advise the government on the principles of the scheme and also individual transactions. Apart from showing that the Exchange was unable to influence off-market activity, the explosion of off-market abuse demonstrated that the criminal justice system was failing to cope and that the changes made as a result of the Greene Committee's recommendations had not been successful.
