Middletown transcript., 1918-11-30
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 McAdoc
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 ration.ng
| 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, 00O, 900 mose
securities during 1919 and hopes to &c;
at least $4,000, 100000 of this sum FROM
war savings.
Despite the decision to continue the
activity of the Capital Issues Commit.
tee in an effort to suppress fraduien.
securities which promoters would secE
to exchange for Liberty Bonds held
by small purchasers, considerable
doubt over the future status of the
committee still exists in the mind CT
Secretary McAdoo and other Treasury
officials, it was said
Some advocate that Congress be
asked to give the committee con-,
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 Of
the committee be takea over by i
Treasury agency, to which the Pres
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 10
require promoters who exchange thei.'
securities for Liberty Bonds to report
regularly the amounts of bonds thus
taken in, and these reports. it is fey,
might act as restraining influence.
Members OF the Capital Issues Corn
mittee, although expressing them
selves as individually anxious to re-
up questions of relaxing their pas;
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
tracing from more essential Govern
mcnt projects. In other words, the
committee now intends to work cut /,
systematic program Tor permitting the
financing of enterprises which will
take up the slack in industrial ana
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 he 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 ill.,
terests whose leaders have assure!
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
without compensation.
Many of these workers now wish to be
of their duties, but the Treas.
ury is urging them to stay, both to
aid in gathering $2,OO0.O0O,OOO in the
of 1918 and to preach tie
doctrine of continued thrift.
Government war-bond selling in the |
future will be along distinctly new
lines. Bonds will have short maturi-
lies. 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 |
War savings organizations through |
put the country will assist in placing |
he bonds. Mr.. McAdoo said, in more
direct manner than in other Liberty |
Loan campaigns. The four and enc !
quarter per cent. interest rate borne |
by the last two issues OF Liberty
Bonds may be changed. depending |
IN other terms Of the securities.