The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-21
CAPITAL ISSUES
BOARD TO STAY
Supervision Of Stocks and
Bonds Deemed Necessary
Indefinitely.
BIG WAR LOAN IN 1919
Government Expects to Float
About $8,OOO,OOO,OOO
More of Bonds.
BIG WAR LOAN IN 1919

WAsHrNGroN. Nov. 2o.--Secretarv ~
the Treasury McAdoo and members Of
the Capital Issues Committee to-day
agreed that the committee snould cou-
tinuc indefinitely its functions OF super
visng proposed issues o. stocks aud
bonds for capital purposes n meas
urc Of rationing capital I'm preparation
for future war loans. At the same tim"
IL became known that the Treasury De-
partment plans tentatively to float about
eight billion dollars more securities dur
ing 1919, and hopes 20 get at least two
billions Of this sum from war savings
Despite the decision to continue the
activity of the Capital Issues Committee
in an effort to suppress fraudulent Sc
curities which promoters would seek IN
exchange for Liberty bonds held by
small purchasers. considerable doubt
over the future status of the commit
tee still exists In tho mind OF Secretary
McAdoo and other Treasury ofici1ls, Il
was said.
Some advocate that Congress he a~',od
TO give the committee compulsory power
which 1t now lacks and without which 1t
Is feared 1t can not make its restrictions
effective after the ardor of war time CO.
operation among business interests has
cooled. Others suggest that the func-
lions OF the committee be taken over by
a Treasury agency to which the Presl-
dent might delegate his power conferred
by the Fourth Liberty bond act to reEu-
late the late of Liberty bonds. ~ this
manner 1t might be possible 10 require
promoters who exchange their securities
for Liberty bonds to report regularly 1.-THE
amounts of bonds thus taken in, apd
these reports, II Is felt, might act as y
restraining influence.
Members of the Capital Issues Com
mittee, although expressing themselves
as individually anxious to relinquish
their duties, agreed to take UP questions
OF relaxing their past strict regulations
to permit the floating of bonds for public
improvements by states, counties and
municipalities, and TO facilitate the CON
structon of buildings in regions where
materials and labor are available with
out detracting from more essential Gov
eminent projects. In other words, the
committee now intends to work out q
systematic programme for permitting
the financing of enterprises which will
take up the slack in industrial and labor
fields caused by cessation OF war activi-
ties. This policy. when formulated, will
be set forth in a statement by the COM
mittee. This may be issued within Il
few days
Special effort will be made to die
courage the floating OF questionable or
highly speculative security issues. al
though without authority to coerce pro-
moters the committee must rely mainly
on the cooperation of Investment bank
ers and other banking interests, whose
leaders have assured the committee of
support.
Another difficult problem OF late war
financing confronting the Treasury In
the maintenance of the extensive war
savings organization, built up during the
la with thousands Of mon and
women giving their time to the move
ment without compensation. Many OF
these workers now wish to be relieved
OF their duties. but the Treasury Is
urging them to stay. both 10 aid in gath
ering billions of dollars In the campaign
of 1919 and to preach the doctrine o.
continued thrift.