The Brookings register. [volume] (Brookings, Brookings County, S.D.) 1903-1971, 1918-12-26
THIS APPLIES TO US

: (Report by Minneapolis Fedora
Reserve Bank.)-There is already eyi
: dence that the cessation of hostilities
under the armistice may be expected
to early reflect itself in improved traf
fc conditions throughout the north
west. There is some improvement II
/ the car supply, and grain which has
been held back on the farms, because
of poor shipping facilities, and because
of bad roads, is moving more freely
to the markets Shippers are begin
ming to give evidence that there viii
be a strong demand shortly for a e
turn to normal traffic conditions, and
that there will be heavy pressure
brought TO bear from all quarters fol
a restoration of the prompt aud eff
cient service that formerly existed in
both freight and express transporta
ton. While this may not come rapid
ly, there will be a steady improve
ment proportiOnate to the l~essened
burden upon the transportation system
because of the movement of govern.
ment material and supplies. Out Of
many conditions that will "esult from
the progress toward a declaration of
peace, this, at least, will be welcomed
by all who are Obliged to rely on trans
pOrtation service.
Some slight labor readjustment has
already occurred, and there is an i'm,
provement in the labor supply as com
pared with 80 days ago. AS the bust
ness of the northwest has not been
SO largely that of war production as
in some other sections of the Coun-
try, there is every probability that
projects that have been held back,
construction that has been deferred,
activities that have been suspended
because of the shortage of men, will
afford opportunities for employment
that will rapidly take up the slack.
The principal products of this terri
tory will continue to be n strong de
mand throughout all Of 1919, and there
is no evidence in either business or
banking circles of any apprehension
as to conditions during the coming
year. The question is frequently
raised as to whether the district is in
a position to offer satisfactory en-
ployment to the many men who have
been called overseas or into the
camps, but it should be borne in mind
that the business of this territory is
increasing very rapidly, and that pro-
duction, both on the farm and in the
factories, has for a number of years
past show ma heavy annual increase.
The close of the war will undoubtedly
bring a period of active development
of the of these states, and
in a district which is fortunate in not
having suffered a severe d~islocation
Of its ordinary activities because of
the war, and where there has been
substantial prosperity, there is every
probability that there will be salts
factory opportunities. not only for all
of those who are shortly to return,
but for labor forces that have had
steady employment since the begin
ming of the war. Probably nothing
more than a temporary period Of re-
adjustment is to be looked for.
The coming of peace presents sew
eral new problems Of practical i'm
p%ortance, one of the most important
of which is adequate protection for
the many thousands of people who
are not investors in the accepted
sense, but who have subscribed liber-
ally to the successive war loans.
While exercising control over issues
of securities for capital purposes in
order that current financing during
the war might not be incompatible
with the governments interest and
purposes, the capital issues committee
in Washington, and its various branch
committees. have likewise exercised
effective control over a miscellaneous
assortment of security issues, which
u~lative,, unsound, doubtful fraudulent
and grossly fraudulent.
These run all the way from enter
prises promoted by men with a sim
cere PHI pose, but of limited business,
financial or technical ability. to enter
prises, the main business of which is
to sell stock for the benefit of the
promoters. In addition to enterprises
selling stock, bonds or securities of
the usual and customary forms, there
have also appeared numerous enter
prises Offering participating certif-
Gates, memberships, and other devices
by means of which they evade both
state and national jurisdiction, while
at the same time accomplishing the
purpose of taking substantial sums of
money from investors.
Within the ninth district. it is al
together probable that within the last
years investors have been per
suaded to part with not less than $685.
900 900 in exchange for various kinds
of securities, from which there is lit
tie hope OF return in the form of profits
or dividends. and in many cases not
even a substantial prospect of salvage
liquidation.
The business Of selling stock is
specialized. Promoters, who
are clever, customarily avail them.
of competent legal advice. and
proceed whit the utmost thorouyb.