The Sentinel=record., 1918-11-21
FINANCING 0F INDUSTRIAL
 ENTERPRISES ENCOURAGED
Special Efforts Win Be Made to Dis. courage the Floating Of Questionable or Highly Speculative Securities ls- sues ard Investment Bankers Win Be Called Upon to Aid

Washington, Nov. 20--Secretary McAdoo and members cf the capital issues committee agreed today that the committee should continue indef- 'initely it's functions (of supervising proposed issues of stocks and bonds Tor capital purposes. as a measure of fationng capital in preparation for future war loans
 At tbe same time i. becamc Known that the treasury plans tentatively to float alont eight billion dollars more securities during 1919 and hopes to get lat least -wo billions of this sum from war savings,
 Despite the decision to continue tho acti,ity of the capital issues commit tee in an effort 10 suppress fraudulent securities which promoters would seek to exchange for Liberty bos,ds g.eld by small purchasers, cons ideFa5fu -rioalnt' over the future status of the committee stiI exists in he mind of Secretary McAdoo and other treasury officials, 1t was said
 Some advocate that congress be
 
 sorry power. which it now lacks. and without which it is feared 1t cannot make tS restrictions effective after the ardor of wartime cooperation among business interests which has cooled. Others suegest that the func- tions of the committee be taken over by Q treasury agency to which the president might delegate his power conferred by tho fourth Liberty bond act, to regulate the sale Of Liberty bonds In this manner 1t might De possible to require promoters who ex.- change tlcir securities for Liberty bonds to report regularly tht amounts of bonds thus taken in, and these re- ports, 1t is felt, might act as re- 'straining influence.
 Members of the capital issues com mit;ee, although expressing themselves as individually anxious io reiinquish their duties, agreed to take up ques.- tions of relaxing their past strict reg ulations to permit the floating Of bonds for public Improvements by states. counties and municipalities and to fa- eiliate the construction of buildings in regions where materials and IaBor are available without detracting from more essential government projects.
 In other words. tho committee nov intends to work cut a systematic pro gram fer permitting the financing of enterprises which will take up tho slack in industrial and labor fields caused by cessation of war activities.
 This r0lioy. when formulated, Will be set forth in statement l.y tho committee. This may be issued with in a few days.
 Special effort will be made to dis courage the floating of questionable Or highly speculative securities issues. although without authority to coerca promoters. the committee must rely mainly on the cooperation of invest ment bankers and other banking in terests, whose leaders have assured the committee of support
 Another difficult problem Of late War financing confronting the treasury IS the maintainence of the extensive var savings examination, built up during the last year. with thousands of men and women giyirg their time to the movement without compensation. Many of these workers now wish to be relieved of theie duties but the treas- ury Is urging them to stay. both to aid in gathering two billion doliars in the camraign nf 1919 and to preach the ,t continued fbt.fft