The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-01-12
j. s. PLANS TO
C0NTR0LISSUE
OF SECURITIES
Government Regulation by
System of Licenses Is
Contemplated.
NO LOANS UNLESS o. KID
100000 Federal Corpora
tiOn Proposed to Absorb
New Securities.
NO LOANS UNLESS O. KID
Special Despg,cb 10 TIE SIN


"AsHINoToN. Jan. 1l.-E:ntire control
over all new issues Of stocks and bonds
py private corporations, with a coilat-
cral plan Of forming a gigantic Govern
nient corporation to absorb any Of the
approved stock or bond issues made un-
der the supervision Of the Secretary Of
the Treasury, is contemplated in legisla-
ton now being drawn b. Administration
leaders in conference with members of
Congress.
Unoer this sweeping programme the
Government becomes the sole bidder for
the public funds through loans, remov.
ing the competition Of corporations that
may be compelled to make new financial
arrangements to meet naturities or bet
terments. and the Secretary Of the Treas
ury Is authorized TO license each in
oNidual security issue. and to refuse ap-
provai to any private enterprise that is
not regarded as essential to war work.
The complete regulation and admins
tration OF all Of the country's finanial
affairs public and private. passes, under
this programme, now advanced 70 the
stage OF the preparation OF tentative leg
islation. directly and absolutely under
the control Of the Washington Govern.
ment
Volume OF Maturities,
1t is estimated that ss75.ooo. 900 Of
private securities mature this year, Of
which amount 3es5.ooo. 900 belong to the
railroad class. $215, 1000. 900 to the public
utilities Of the land. and S1s5. 900, 900 are
OF miscellaneous character.
Under the plan as now proposed the
Secretary Of tho Treasury will turn
over TO the Federal Reserve Board the
epfire problem Of security issues. This
board Is to be charged with the admin
istrative work incident to all private
financing and will pass upon the ques-
ton OF necessity for making the issues.
Laying the foundation for this sweep
ing programme the White House Is now
considering the issuance OF a proclama-
tion In which all Governors of States,
county. city and other local officials are
10 De urged TO cease making cxpendi-
lures for public improvements that are
not absolutely required for the public
service. and to go to the extent OF re-
fusing to issue permits for buildings and
other works calling for capital cxpendi-
iures. just as fully as may be done
The only exception to the general
plea il. under the proposed prociama-
ton, in such cases as may apply to
works that are to be erected In further
ance Of the aims OF the country in win
ming the war.
Effect on Building.
Thus not only will thc Governments, $
idea affect bonds. stocks and other So
curitles, but even building operations
upon a small scale would feel the tight
ening grip of the administration con-
trolled dollar market. The Government
could gay which lines OF industry might
be financed and which would have to
step aside and give the pro-war ven
lures the right Of way.
The magnitude and the Importance Of
this vast undertaking is recognized OF,
all sides. Great Britain and Canada
have already grappled with the problem
and no private security issues can he
made in those countries without the
sanction OF the respective Governments
1t is pointed out that private issues =
naturally compete with the Govern
,nent for the worlds supply Of available
capital and the approaching issue OF
new Liberty bonds has led the Admin
istration to clear the field Of financial
competitors before the time arrives for
the offering Of the new loan.
Secretary McAdoo In his annual re.
port forecast some such action on the
part Of the Government; when he said
The Government must, II necessary,
absorb the supply OF new capital avail
able for investment in the United States
during the period OF the war. This. in
turn. makes 1t essential that unneces.
sary capital expenditures should be
avoided in public and in private enter
priscs. Some form OF re2ulat! Of new
capital expenditures should be pro.
vidcd."
In later statement the Secretary
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