Evening journal., 1918-08-27
BANKERS Will WAR
ON BOGUS STOCKS.
American Association to
Assist Capital Issues
Board in Campaign
SENDS LETTER OUT
TO INSTITUTIONS

Jerome Thralls. secretary Of the Clear
ine house section OF the American
Bankers Association. has sent out let
ter TO bankers advising them OF the
propaganda Of publicity and education
that has been instituted under The aus
pices OF the Capital Issues committee
to check the sale Of bogus and worth
less securities to persons who have
no knowledge OF values. Recent inves-
ilgations have shown that INSCRIPTIONS
promoters are swindling thousands OF
people out Of their savings and Liberty
bond holdings by unloading on them
securities OF little or no value, accom-
panied with promises OF big returns on
their investments Il is estimated that
during the last year the total Of such
bogus securities that have been sold
In the United states was from s2J0,OOO,-
600 to S5OO.O00,OO0.
Bankers are urged. Mr. Thralls says
10 his letter. ITO serve on vigilance COM
mittees that will be organized in each
Federal Reserve district for the purpose
OF putting an end TO fake promoters,
snd TO use their influence in every pos
sible way to aid In protecting the peo-
pie against swindlers who attempt to
dupe them through the sale OF bogus
securities"
Mr.. Thralls thus outlined the plan
OF procedure;
AT a meeting held at Washington
July 2i, 1918, under the auspices OF the
Capital Issues committee, attended by
representatives Of the Federal Reserve
Board, various departments Of the gov
ernment, the American Bankers Asso-
citation, the Investment Bankers Asso-
citation. the Association Advertising
Clubs Of the World, and the Associated
Press. Il wss determined TO start a pro-
pagsnda Of publicity and education de-
signed TO inform the people, protect
them against worthless investments, and
TO direct the use Of surplus savings to
investment in government securities or
TO productive purposes President c.
A. Hlnsch OF the American Bankers AS
ISOLATION appointed II. n. Mckee, pres
ident OF the National Capital Bank OF
Washington, d. c., a special committee
OF one to represent the American Bank
ers Association at this meeting.
The Capital Issues committee will
direct The following organizations will
cooperate, 1t being suggested that:
The investment bankers refuse to
handle securities not approved by the
Capital Issues committee issued since
April ). 1913.
Abe Associated Advertising Clubs OF
the World induce papers TO decline ad- /
verlisements OF securities not known
TO be sound and not intended TO raise
money for needful and Indispensable
enterprises, ccnnnlng advertising mat
ter TO that covering securities approved
BY the Capital Issues committee.
The Associated Press publishes on the
front pages OF its papers stories telling
OF the large amount OF securities being
offered and warning the public against
their purchase and against trading their
Liberty Bonds for such securities.
The Chamber OF Commerce OF the
United states and the National Associa-
ton Of Credit Men use their publications
and connections in exposing and warn
Ing against the evil.
The American Bankers Association
brings the proposition to the attention
OF its members and urge them TO assist
in every possible way.
Mr.. Thralls advises bankers OF two
ways to check the bogus stock and
bond evil: First TO scare the prOmot- !
ers OF fake corporations; and. secondly, |
to educate and warn the public against !
exchanging Liberty Bonds for, or in |
vesting their savings in, securities OF
unknown or doubtful value. lie says |
that.bankers can help in the movement /
By declining TO act as directors or to /
lend their names to doubtful enter
prises.