Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-05-12


The local advisory committee OF tho
capital issues committee has not been
called upon to pass on any applications
for new security issues or on ne"
ventures Of any character.
John Joy Edison and Eugene r.
Thompson. who constitute the ADVISORY
committee. have authority to recon-
mend or disapprove OF any new busi-
ness venture. building operation or
capital issue involving 100000 or over.
While not final, there would be little
likelihood of the recommendation OF the
local advisers being turned down.
+ 1t is decidedly important to have this
recommendation and consequent APP
prevail from the capital issues com
mittee Of the fifth district unaer tne
law the dement's OF the War Finance
terprises formulated after the passage
of the act unless their financing has
been approved.
1t would seem as IL the proposed issue
Of Washington Railway Donds LOT luz
nishing new equipment. even though
1t may be approved by the public utility
commission, would come under the
capital issues act, and 1t Is much more
than probable that the approval OF the
issue would be recommended. as the
company cannot meet the demands OF
traffic without new equipment.
The organization of bank does not
require approval OF either of the com.
mittees mentioned. but the building Of
a large office building. involving a very
heavy financial obligation. the use Of
scarce material and of scarcer labor. 10
another question. One Of the leading
bankers of the city suggested that the
money for such an enterprise might be
Forthcoming, but that the probabilities
were not favorable and cited at least
one financed building that has not
reached the hole-in-the-ground stage
In the event Of corporations issuing s,dn
unaproved securities in excess OF WOO
900, the time might come when assist
ance to take up maturing obligations
might be required and the question OF
Official approval would line up large ana
important.
up to-date business men. familiar with
every phase of local conditions, the
former specializing in real estate and
the latter in securities and investments.
The Third liberty Loan.
While much speaking. an enormous
amount of advertising. matching and
patriotic inspiration was used to put
the third liberty loan over the top in
Washington, and all over the country,
there never was any doubt of its ulti-
mate success. A certain amount OIL
fireworks. are necessary, even though
slightly expensive.
The American people were back OF
the loan as they have never been be-
fore and the $50 and 500 bond buyers
were doing their fulln duty, even
while some of the big buyers of former
issues felt compelled to reduce pur-
chases because of income taxes. etc
The fact that the bonds are being
marketed under par means nothins'
some large banks and corporations
purchased overly freely with intent 70
liouidate at once and charge the small
loss to advertising or profit and loss.
One feature of the maket for bonos
stands out plainly. the first Shs. tax
free, except estate or inheritance. hoid
the market at premium over all
other liberty bonds.
No one can tell how far the United
States will have to go in financing TINS
war. but a fourth liberty loan is as
sured and proba bly, fifth and a sixth
Moreover the first indication OF
large increase in taxation, IN stamp
taxes and in income taxes has been
evidenced in the House.
Hence 1t is that the 3hs Will prop.
ably continue to display strength ana
may cross par during the coming win
ter. il the tax revision is carried out
on the lines indicated.
Both the first and second 4s should
sell on the same basis as the ANS. into
which they are convertible at the Will
of the owner, but each retains the pro-
visions of maturity, etc. of the origf-
third liberty bonds mature in ten years.
does not change the 1947 maturity date
in the other issues.