El Paso herald. (El Paso, Tex.) 1901-1931, 1918-06-13
BUY BONDS, NOT.
WILD CAT STOCKS
Public Asked Not to Draw
Money From Banks to
Enrich Schemers.

] Numerous complaints from bankers
/ throughout the state Of the activities
I Of promoters and stock statesmen who
are daily taking out Of the channels
Of legitimate business vast sums Of
money through the sale Of stock in
wild cat concerns. have been re-
ceived by the department Of insur-
ance and banking. at Austin
A letter embodying that assertion.
with the request that FL Paso bankers
do everything m their power 20 dis
courage depositors from Withdrawing
funds for such i'll advised purchases,
has been received by n. =. Christie.
cashier OF the Texas Bank g. Trust
company. II was written By commits
sioner Charles o. Austin. OF the de-
partmeut Of insurance and banking
Thinks Situation Serious.
Mr. Austin considers the situation
a serious one. and seeks the coopera-
tion Of bankers all over the state in
discouraE ing the activities OF these
stock selling individuals in their
communities ito the end that the
equilibrium Of banking conditions may
not be disturbed" by the Withdrawal
OF many sums OF money from banks,
"and deDositors in state banks may
not be made the victims Of unscruplu-
lous and designing promoters
Bankers should advise their clients
against investing in enterprises which
can not iu the very nature OF things,
be successful. and which are being
promoted solely for the purpose OF
separating credulous and uninformed
persons from their hard earned
money" continues the commissioner
Suggests Five Points.
Nr- Austin suggests ADVISING tne
public on the following five points,
which. he hopes. VIII deter them
from investing in wild cat promo
tions-
There IS no economic necessity
for the establishment Of any business
where it is necessary TO promote same
through stock statesmen who receive
commissions Of from % TO so percent
upon the nar value OF the stock sold
Promoters launch stock selling
schemes in sections that enjoyed phe-
nomenal development and profit. so as
10 be able 10 mislead their dupes with
respect 10 possible profits and thus
more easily obtain their money
Slack Of raw material adequate
transportation facilities. great album
dance Of skilled labor. and density OF
population are sufficient economic
reasons to convince intelligent per-
sons that manufacturing enterprises
can not yet be established In Texas
and reasonably hope TO successfully
compete with eastern factories which
have al their doors all these condi-
tons necessary TO success
An stock selling schemes az the
present time are disloyal TO the gov
eminent. because they are seeking Go
get from the people money which
should rightfully be invested in gov
eminent securities These schemes
proposed viii be OF no assistance in
helping win the war.
Encourages DislOyalty.
st is the patriotic duty OF every
citizen of Texas 20 invest every avail
able idle dollar, or every dollar that
may be properly Withdrawn from the
channels OF legitimate production Of
war necessities. in Liberty bonds. war
savings stamps and Red Cross work
He who fails 20 DO his duty In this
respect. but rather puts his money
into stock selling schemes, is dis
loyal citizen by reason Of the fact
that he is hampering the government
in obtaining funds 20 carry on the
war and is thus directly aiding our
national enemies
Bankers are asked not 10 permit
their own names 20 be used by these
schemes. nor should they write let
tiers Of any kind upon bank station
cry to or concerning these promoters,
as such letters VIII inevitably be used
TO the embarrassment and injury OF
the writer and his bank through the
relithographing Of the letter head and
attaching 10 1t such wording as TO
lead unsuspecting persons to believe
that their schemes have the endorse
meut of some reputable banking in
stituton-