Date:    4/6/99  1:46 PM

Subject: S7-5-99

 Comments Regarding Subject Rule
     
This proposal  will probably end up scaring away market makers.  If 
market makers becomeresponsible for learning about the stocks they make 
a market in, and are supposed to avoid stocks where there may be fraud, 
then market makers will fear getting sued by investors if a stock they 
make a market in
turns out to be a scam, a fraud, or just a failure. Why should they take 
this chance? It would be safer just to abandon these OTC stocks. 
Additionally, the
time and expense required for market makers to research all the OTC 
stocks they make a market in could also scare them away. And with less 
market makers, liquidity decreases and spreads will widen. Plus, with 
legitimate market makers out of the way, it becomes easier for the 
sleazy
market makers to manipulate stock prices.
     
Market makers should not be given the burden of seeking out stock fraud.
     
Their role is to provide liquidity. Regulators should be the ones who 
try
to reduce stock fraud.
     
Is it governments role to protect us from our own economic decisions?  I 
do not think so.
     
Charles W. Jones
P.O. Box 102
McKenna, WA.
98558
cpji@olywa.net