Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-03-11
BANKS Try
To CRIPPLE
BOND SHARKS
FARMERS VICTIMS
Plumber of Fake Stock Sales
men Estimated to Be
S25O,OOO,0OO at Least

NZOUIUUUjUUU al Least
John Barleycorn has been hand
ed his passports. 1t it. possible
that the stock swindler will get
hiss
There is hope.
The stock windler-smooth as
silk, NEUTRALITY-SUSPICIOUS.
so long, protected by highly ac-
complished retinue of legal sharks,
had his will in spite of the law,
that it is difficult for those who
have watched his progress to be-
lieve that his door is near.
But it may be imminent. His
greatest enemy is the same agency
which made possible the sale of
Liberty Bonds to some 20,00Q,000
Americans who never before held a
>iece of investment paper, and
whom the stock swindler, with
itching fingers, has hailed as his
prey.- His greatest enemy is the
system of federal reserve banks,
well-organized and capable of cop
ing with his kind.
1t has recently been estimated
by the committee on fraudulent
advertising of the Investment
Bankers Association of America
that sales OF fraudulent securities,
either for cash or IN trade for
Liberty Bonds, have reached the
enormous sum of from $3.50, 000,-
900 to $50 100000 year. In
comment the committee said,
While there is wide margin be-
tween the two figures, even the
smaller figure is a menace to the
country"
Banks to Rescue
In the Southern states the coun-
try banks have undertaken the
delicate and often thankless task
of educating the farmers to with
stand the mental brow-beating of
siib-tongued thieves Many of
hanks have madezit a rule not to
handle any of the farmers notes
where they are given in exchange
for worthless oil, tractor, farm
machinery, and such-like Stocks"
1t Las taken courage to do this,
at the risk of losing a good Gus
toner, but the banks have relied
upon the inevitable exposure of
the swindling games and the
future gratitude of the farmer.
Moreover, they know that if they
discount the note the victim will
feel.a sense of resentment against
them when he finally learns that
has been duped. In the old days,
small, out-of-the-way, country
banks have been known to play
into the hands of fraudulent pro-
motors, but such a condition has
passed with the federal reserve
systems advent.
In a warning to the banks Of
his district, John H. Rich, reserve
agent for a federal reserve bank
recently said:
Sounds Warming
1.-The business of selling stock
is highly specialized. Promoters,
who are clever, custo marily avail
themselves Of competent legal adj
vice, and proceed with utmost
thoroughness, method and system
in the promotion of the issues in
which they are interested. Schools
for statesmen are common Incl
dent to these campaigns, and in
these schools statesmen are trained
in the effective methods of MAX
ing their arguments plausible to
the investor. When they take the
field they are in charge of an ex-
pert manager. They operate fire.
quently in groups, dividing a
given territory among them, and
rapidly and Systematically clean
up all the prospects,
The New York stock exchange
has entered the lists against the
financial Wallingfords, say Us
Forbes magazine, and as first
step has obtained from all of it's
members all agreement to include
in all of their advertising copy a
short slogan to be supplied by the
committee. The first Of these
texts, which is now appearing in
advertisements of member firms,
says:
"The U. S. Government
warns against the stock
swindler. Consult your bank
first"
According to a statement by
President H. G. S. Noble, The
action taken by the exchange will
he merely the opening wedge in a
broad national campaign to ex-
pose stock-swindling operations
and in this way protect the Sc
curity-buying public"
HAWAnANs MAKE SWEETS
About one-fourth of the population
In Hawaii are engaged in the growing
of sugar cane and the manufacture OF
raw sugar.
N~ TAIC