The midland journal. (Rising Sun, Md.) 1885-1947, 1918-11-29
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BIG LOAN FOR
NEXT YEAR
Treasury Plans TO Float Eight
Billion in Securities
WAR SAVINGS A BIG HELP
Capital Issues Committee Likely To
BE Continued To Keep Check On
Questionable Or Highly Specu-
Iative Securities.


Washington. - Secretary McAdoo
and members of the Capital Issues
Committee have agreed that the COM
mittee should continue indefinitely its
functions of supervising proposed is
sues of stocks and bonds for capital
purposes as measure of rationing
capital In preparation for future war
loans. AT the same time it became
known that the Treasury plans tenta-
lively to float about $4,000, 900 more
securities during 1919 and hopes to get
at least $4,000, 000,0 of this sum from
war savings.
Despite the decision to continue the
activity Of the Capital Issues Commit
tee in an effort to suppress fraudulent
securities which promoters would seek
to exchange for Liberty Bonds held
by small purchasers, considerable
doubt over the future status Of the
committee still exists in the mind of
Secretary McAdoo and other Treasury
officials, it was said.
Some advocate that Congress be
asked to give the committee COM
pulsory power, which it now lacks and
without which it is feared it cannot
make its restrictions effective after
the ardor Of wartime cooperation
among business interests has cooled.
Others suggest that the functions CT
the committee be taken over by a
Treasury agency, to which the Presi-
dent might delegate his power, con-
ferred by the Fourth Liberty Bond act,
to regulate the sale of Liberty Bonds.
In this manner it might be possible to
require promoters who exchange their
securities for Liberty Bonds to report
regularly the amounts of bonds thus
taken in, and these reports, it is felt,
might act as a restraining influence.
Members of the Capital Issues Com
mittee, although expressing them
selves as Individually anxious to re-
linquish their duties, agreed to take
up questions of relaxing their past
strict regulations to permit the float
ing of bonds for public improvements
by States, counties and municipalities
and to facilitate the construction of
buildings in regions where materials
and labor are available without de-
tracting from more essential Govern
ment projects. In other words, the
committee now intends to WORK out a
systematic program for permitting the
financing of enterprises which will
lake up the slack in Industrial and
labor fields caused by cessation of war
activities.
This policy, when formulated, will be-
set forth in a statement by the CON-
mittee. This may be issued within a
few days.
Special effort will be made to dis
courage the floating of questionable
or highly speculative security issues.
Although without authority to coerce
promoters, the committee must rely
mainly on the cooperation of invest
ment bankers and other banking in
terests whose leaders have assured
the committee of support.
Another difficult problem of late war
financing confronting the Treasury is
the maintenance of the extensive war
savings organizations, built up during
the last year, with thousands of men
and women giving their time to the
movement without compensation.
Many of these workers now wish to be
relieved of their duties, but the Treas
ury is urging them to stay, both to
aid in gathering $2,0OO,O00,000 in the
campaign of 1918 and to preach the
doctrine of continued thrift
Government war-bond selling in the
future will be along distinctly new
lines. Bonds will have short maturi-
ties, and Secretary McAdoo explained
that by this he meant from three to
seven or eight years. In addition, is
sues will be smaller than in the past
and probably will be marketed more
continuously.
War savings organizations through
out the country will assist in placing
the bonds, Mr. McAdoo said, in more
direct manner than in other Liberty
Loan campaigns. The four and one
quarter per cent. interest rate borne
by the last two issues of Liberty
Bonds may be changed, depending
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