New-York tribune., 1918-02-24
Reserve Boards Capital
Committee Extends Its
influence
Conference Tuesday
Voluntary System of Securi-
ties Regulation To Be
Discussed

WASHINGTON. Feb. 23.-Every mu-
,;,ipal bond issue of 100000 or more
,ereafter will be passed on by the Fed
.,al Reserve Boards capital issues
.,r,mittee before being foated. BY
reducing to-day from $3.50, 900 to $780,
noo the minimum size of municipal
issues which it will consider the COM
mittee extended its influence over sew
s,sI times more municipal bond issues
than heretofore.
The committee found recently, after
snalyzing pending applications for ap-
proval of proposed issues, that the
great Bulk of municipal bonds was
offered in blocks of less than S250,000,
and therefore they were not subject to
the committees restrictive influences
Federal Reserve agents of the twelve
Reserve banks, who also act as chair
men OF the committees of the capi-
tsl issues body in their respective dis
tricts, will come to Washington for a
conference Tuesday. The general opra-
ton OF the new voluntary system of
regulation Of securities issues will be
discussed.
instructions to Applicants
In circular of instructions to ap-
plicants for the committees appr8val
OF contemplated issues the committee
and its advisory body, headed by AL
len b. FORBES, explained that the pur-
poses and circumstances surrounding
each issue must be described fully in
the applcatlon This Is particularly
necessary II funds are needed for eX-
tensions or improvements relating di-
rectly to war production or for fulfil
ment OF any national. state or local
governmental requirement.
IN all cases. said the instructions
full reasons should be given why the
proposed issues cannot be postnoned
until after the war or why the neces-
sty. IS greater than the paramount
need OF the national government in con-
serving the financial resources. mate
rails and labor of the country for the
war;
For state, country or municipal is
Of the bill, resolution or ordinance
under which they were authorized.
The committee announced today
that 1t was working with the Federal
Bureau Of Public Roads in determin-
ing what contemplated road construc-
tion this year would be necessary for
urgent military or economic reasons.
Road Plans To Be Curtailed
Most roads, to which the bureau
heretofore has planned to. contribute
VIII be built even under the capital
issues restrictions. it is said, since
they have been carefully selected on
the basis OF their economic Importance
The support Of state highway commits
sioners was enlisted at recent con-
ference with the Capital Issues Com
mittee and they Will report soon to the
Public Roads Bureau an outline of
their respective curtailed road build
ing programme for the year.
In normal times highway construc-
ton and maintenance in the United
Stat States call for an outlay of about
s300,000,000 a year. Officials are in
cined to the view that this sum will
not be greatly curtaied this year. but
that it will be spent on roads vitally
necessary for transportation of war
materials
Projects for building of roads which
cannot be completed for more than a
year probably will be given unfavorabln
consideration, since the Capital Issues
Committee is basing its vcrdicts on the
usefulness Of projects completed this
wear