New-York tribune., 1918-08-30
Bankers Aim to
Stabilize Market
For Liberty Bonds
Plan National Organization
For Support of War
Issues

Ways and means for effectively sta
bilizing the market for outstanding
United States government Liberty
Loan bonds are being studied by a
committee Of investment bankers,
whose appointment was announced yes
terday, consisting of George W.
Hodges, of Remick, Hodges & Co.,
chairman; Charles f. Mitchell. presi-
dent of the National City Company;
Harold Stanley, OF the Guaranty Trust
Company, and ]. w. Horner, of Will
lam A. Read e. Co.
The committee has already held sew
eral conferences, and it's members are
hopeful of being able to evolve a plan
for the establishment of a country
WIDE organization that will serve to
protect and support the market for the
Liberty Loan bonds of both present
and future issues. The Canadian plan,
which is working most satisfactorily
in supporting the Victory bonds solo
by the Dominion last year. is viewed
with favor here, and it is not improb-
able that its employment in the United
States may be suggested, with certain
adaptations to fit conditions on this
side of the border.
Committee Will Report Findings
AS soon as the committee has cov-
cred the whole matter of supporting
the market for the Liberty bonds it
Will prepare a report of its findings,
which will be turned over, with sug-
gestlons and recommendations, to the
committee of distribution of the Lib
erty Loan organization in this Federal
Reserve district
A member of the committee said
yesterday that what is most needed is
something that will tend to maintain a
continuance of buying power in the
market for the various Liberty Loan
; issues in the period between loans
when interest lags. 1t has been sug-
gested that the bonds, which are not
listed on the Stock Exchange, be taken
Oft that board and the market be trans
1erred into the hands of a great body
OF authorized dealers, who would un-
dertake to develop a demand for the
ponds sufficient to absorb such offer
lngs as would have to be taken by the
market. Canada's measures of This
character have been operative for many
months. The organization there has
the. backing of the government, and
dealers who find buyers for the Cana
dian Victory bonds are given a sub
stantial commission, whereas the deal
ers who have bonds to sell receive no
remuneration at all
Need Bond-Selling Organization
For some time past bankers here and
IN other cities who have been identl-
fed with the Liberty Loan campaigns
have been aware of the necessity of
the formation of large and compre-
hensive bondselling organization that
might be utilized in the support of
government securities. 1t is estimated
by competent authority that there
are about 10000 banking institutions
and investment houses in the United
States that could be called upon to
join such selling organization and
spread propaganda in behalf of the
government in its endeavor to finance
the war. 1t is generally acknowledged
that such an organization would rem
der valuable assistance to the govern
ment in connection with future offer
ings of bonds. as we'll as helping to
maintain quotation for the present
outstanding Liberty Loan bonds more
nearly to the level at which thew were
originally foated.