Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-12-21
FEDERAL
SEEK SWINDLERS
Dragnet Out for Brokers
Offering Shady Stocks
for Liberty Bonds
PROTECT
Many Victimized by Men of
Wallingford Type, As
serts Passmore

Agents of the Department Of Justice
are on the heels of several brokers in
this city who are inducing Liberty Bond
holders to part with their gilt-edged
Government securities for worthless
stocks in the Rufus wallingford type
of companies.
Brokers caught in the Government
dragnet will be prosecuted vigorously,
for L. Pussy Passmore, governor Of the
Federal Reserve Bank in Philadelphia,
asserts the Government is determined
to protect holders of Liberty Bonds who
are susceptible to the wiles of shady
financiers.
That many persons have been caught
by the INSCRIPTIONS stock promoters is
admitted by Mr.. Passmore.
Influenced Value OF Bonds
That these transactions which he
characterizes as most unfortunate"
have exercised an influence on the mar
ket value of Liberty Bonds is made
plain by Mr.. Passmore, who, in a state
ment today, urged holders of the war
bonds to continue their wartime thrift
economies In order that they may re-
tain their bonds.
1T cannot be denied" said tho Cover
nor OF the reserve Bank, that a bulk Of
Liberty Bonds, and particularly of the
fourth issue have bSen dumped on the
market. The tendency to unload the
bonds has depressed their market value.
and If this practice is to stop, the citi-
zens of Philadelphia must be brought
to realize that their moral obligation
to retain their bonds has not been
lifted"
such a Hood OF fourth series bonds has
been dumped on to- the market that yes
terday when the stock exchanges closed
for the day, the price had tumbled down
to $94.5O, the record low level for this
issue.
Broker have no hesitancy in saying
that hundreds of Liberty Bond holders
are selling their securities in order to
raise Christmas funds. while others as
sert that many large holders are I'M
loading their bonds in order TO estab-
lislr losses in connection with their in
come-tax returns.
Pressing Need for Service
Many persons who can well afford
TO hold their Liberty Bonds" said Lewis
II. Parsons. chairman of the Liberty
Loan committee, are dumping them on to
the market. They ought to consider
that there is still a pressing need for
service, and stand by the Government.
They should refrain from selling their
securities. BY flooding the market with
the bonds they depress the market value
and set a bad example to the poor, who
really made sacrifices during the war.
There is a moral obligation attached
to every Liberty Bond, for the Govern:
ment sold them with the thought that
annl, md nx.aRxg ,no ,-,.t = - T.
purchaser. They are the best securities
in the world, and nothing can be gained
by selling them at what appears to be
their present-day value"
There Is no way of checking I'D the
number of bonds that have been thrown
into the market, but brokers distussine
that phase of the situation point to the
market quotations of today and shrue
their shoulders. They confess that there
ID nothing 10 do except emphasize the
moral obligation behind each bond and
TO discourage trading in them.
Merchants Encouraged Unloading
The unloading roces was given q
little impetus by merchants who
launched a scheme which permitted Lib.
erty Bond holders to obtain merchan.
disc in exchange for their securities,
I'VE are d~iscouraging hat system
bdlu WI Il anu HaNB IOunC
that merchants exhibited a willingness.
to cooperate. Although one big mer.
chandise house In Philadelphia started
such a system, we have not found thai
the system was widespread.
1.-THE common fault seems to be Will
the man who believes that the signing o.
an armistice relieved him of all obllga,
3 tons to his Government. It must b,
borne in mind that many of our citi
zens never saved until the war, n tn,
war did not last long enough to fix tn,
habit. Now h a the struggle is ovel
they are living up to their incomes, aht
to get money are willing to sell bond,
at a sacrifice. A man owning a $10l
Liberty Bond does not consider that b,
losing SIS or SO on that bond he Is dcinl
anything unpatriotic by selling It. ii,
Is willing to accept his loss in order L
get the money. to Is an unfortunate
condition, but "a condition that is quit,
common We must continue to save
for the Government is in need of money
Another bond campaign will be con
Quoted in March, and instead of sellinl
our. present holdings we must prepar,
~ buy more
Passmore Appeals TO Holders
To the men and women who made sac
rifces in order to buy Liberty Bond
Mr.. Passmore. through the EVENING
PUBLIC LEDGER, sends this message:
-"You worked hard to buy the bond
and the money invested represents gen
uine sacrifices. Those sacrifices are be
hind you and the bonds, the best In tn
world, are yours. Keep them. Tha
may involve a. little sacrifice, but 20,
owe 1t to your country"
TuUCVCc pCMnUE uCAyV GAZE