The Washington herald., 1918-12-16
BROKERS LOOK 4
FOR CLEANUP
Stock Statesmen Prepare
for Big Campaign Among
Farmers In West. q

and especially in the farming district
Of the Far West weIl-trained travel
ing salesman who seek customers for
corporation stock are beginning an
active campaign. This Is especially
| true Of the agricultural regions OF
the Far West because so much money
has been made and so large have
been the investments in Liberty bonds
that IL is presumed to be possible to
tempt those who have money or bonds
to buy various stocks. An estimate
has been recently made that in the
Northwest at least hfty-fve million
/ dollars have within a few months been
paid for all kinds OF securities, most
/ OF which are almost worthIess and
none Of which furnish afy hope OF
I proht or dividends. The csmpaigner
who seeks 10 persuade individuals 70
buy stock Is well trained. His buSi-
ness has become highly specialized
! Training has gone so far that pro-
| moters first Of all obtain legal advice.
second they go so far as to establish
training schools for sslesmen wherein
The statesmen are taught how 20 put
iorth persuasive arguments which ap-
pear plausible 10 an investor.
The field into which these Campaigns
stock statesmen are sent is in charge
OF highly qualified expert nanaeer.
Operate In Grosps. 49,.
Sometimes the statesmen operate M
groups. They divide up a territory and
proceed with rspidity and skin 20 ap-
proach and tempt all OF the farmers
and others who are colloquislly called
prospects" Many seek employment
OF this kind because the pay is good
II is made 10 them in the form OF
| commissions. These are frequently
as high as 2 per cent and never less
than Is. while the percentage most
| frequently allowed Is 20 Renunera-
ton OF this kind brings satisfactorg
| returns to the salesman. For in
Z stance, il any salesman is allowed -
| per cent in the form OF commission,
| then. even though he sells only one
! share OF the par value OF 500 in any
/ one day, he would gain 81 as COM
mission. or II his commissions were
less he would certainly gain SIS. These
earnings are probably easier TO make
than the men could obtain in any
other kind OF employment.
Seeking Easy MARKS. sG:s: -
Wonder is expressed by honorable
and competent business men at the
zeal with which these statesmen pursue
I their queer vocation. They are taught
by their expert managers that in the b
! United States as well as IN CanHdn
never has there been a time when the e
plain people had as much money as
at present Therefore il is not dificuIts
TO persuade them 10 pay out some part
Of k.E
featuring propositions or else con-
vert their liberty bonds into securities
OF this kind ..ll-
These Campaigners prefer 10 receive
liberty bonds in payment for the
shares they sell TO actual cash For
In addition to the profit to be made
upon the sale OF shares the liberty
I bonds are taken at the deDreciated
price below par in the expectation
that in due time the price will ad-
vance. Leading business men and
bankers Of the West are now looking
10 the Capital Issues Committee in
Washington. which with its various
branches will be in authority for at
least six months after President VIII
son procIains that the treaty Of peace
has been signed. The Capital Issues .
Committee Will continue therefore TO
have supervision over all issues OF Sc
cUrities. except that its authority does
not extend to issues OF securities not
exceeding 800 01.
Intimations have been received by
bankers and business men that the
probabilities are great that President
Wilson will delegate to the Treasury
/ Department new authority whereby
dealings in liberty bonds can be con-
trolled.
=, Sure TO Reach Par.
Every person in the United States
who possesses or who hereB fter will
possess after the fifth liberty loan
= has been foated. a liberty bond.
ought to know. and should be taught
that Notwithstanding what the
daily quotations in liberty bonds
may be. these are sure TO fuctuste
and will ultimately certainly be
valued in the market at par or pos
sibly even above par. Furthermore
there should be a nationwide cam
paiEn OF another character from that
which the peddlers Of stock or other
securities are now carrying on. For.
iif there be sufficient information
given to the people they will learn
that IL IS not wise to have any deal
inEs with these stock campaign SELL
ers and never to buy stock or se-
Curities unless they deal through
banks and high grade investment
houses They should never part
with their bonds. even II there BE-
necessity for SO doing. without
having first consulted with respon-
sible bankers.
What Agriculture VIII Do.
None OF those who are well informed
doubts that production. perhaps un-
surpassed. certainly equal to any for
mer production of food supplies. will
characterize the year 1919 Every
competent banker and thinker knows
and has frequently asserted OF 1Hts
that our actual dollars are not wealth
although they are one Of the means
Of producing wcalth-but that produc-
tion. on the land, represents real
wealth. If this view be correct. then
the farmers OF the West sre to pre-
dUce 50 greatly. weather conditions
being favorahly. as 10 add proba blv
S5,oOO Ol0 9O0, perhaps $4,000. 900. 90. Of
new and actual wealth 20 the country
In the year 1919 Bankers in New
York have heard recently that labor
readjustElent has already begun in
the great farming district and yet
the demand for labor will COntinus
because Of tho certainty that plans
involving industry OF all kinds which
have been held back and construc-
tion which has been deferred. and
activities that have been suspended