Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1920-04-02
IOWA RICH FIELD
FOR STOCK CROOKS
NEW YORK BANKER SAYS STATE
HAS BEEN EXPLOITED By
SHREWD statesmen.
DEARTH OF NEEDED
INVESTMENT MONEY
Legitimate Channels Suffering For
Lack OF Capital Because Money OF
State Has Been Tied Up in Doubt
fu, Stocks and in Farm Trans
actions-Some Too Prosperous.
2pccial TO Times Republican.

epccial to Times Republican,.
Dcs Moines, April Finder the
heading Waste of Capital the April
business review and forecast put out
George ID. Roberts for the Nationai
City Bank of New York reviews the
wild orgy of stock selling which has
taken place in Iowa In recent
months. Mr.. Roberts, who was for
merry editor of the Fort Dodge Mes
senger and later director of the mint
is looked upon at one of the coun-
try's greatest writer's on money mat
tiers and business conditions.
He declares that while the coun-
try is plainly suffering from a dearth
of investment capital at the present
time =" there is evidence that
great amount of new capital is
available in other fields and that
much of it is being dissipated ana
= wasted in ill-advised ventures.
He states that the high prices for
farm products and high prevailing
wages have created large body OF
new and inexperienced investors
turnout the country who are I'M
familiar with the risks of new busi-
ness enterprises. uniformed as to
standard securities and an easy prey
to the skillful stock statesmen
The state of Iowa has been an
active field for these efforts de-
cares Editor Roberts. After review
ing the methods Of these concerns in
which he quotes editorials and new
reports which have appeared in Varf-
Gus Iowa papers he continues.
..Inasmuch as stock sales seem to
be commonly financed by promissory
notes which are disposed of to local
banks, the campaign described ABOVE
evidently has contributed to the
state of inflated credit and tight
money which exists over the country.
THE great activity in farm lands
has been another important factor
he continues. 1T is not to be re-
garded in the same light as the
aoation of worthless stocks, for there
is a bisis of real values even tho
the movement may be overdone for
time. but farm sales must have tied
up a. Sarge amount of capital. A
trust company in Des Moines has
conducted an inquiry which reveals
that sales of 1860 farms were closed
up in Iowa on March !. last. the
custom being for farm transfers con-
tracted during the preceding year to
be made at that date. The aggregate
amount involved In those transfers
is not given but reports show that in
each of several counties the total
vas approximately s10,OO0.0O0.
Legitimate Stocks Suffer.
Mr.. Roberts declares that while
these private corporation promoters
and their statesmen have had little
difficulty in selling these stocks the
established investment houses which
handle high grade securities hnd
that the market has but limited
power of absorption. They are pes
simistic about the ability of the rail-
roads to raise the amount of capital
required for new equipment, enlarged
terminals and other facilities which
are required to enable them to
render proper service to the public.
He states that the loss of capital
which results from the sales OF
worthless stocks Is deplorable, not
only on account of the investors who
have been defrauded and who in
many instances have anticipated
future earnings in which they may
suffer further disappointment, but on
account of the country's need for
capital.
Iowa and Kansas have suffered
millions of losses during the past
six months because of inadequate
transportation facilities" he de-
cleres, "and there can be no relief
except. as the railroad companies are
able to absorb new capital, which In
the present world situation is very
difficult
He points out further that the
people do not sufficiently realize the
public interest in capital accumula-
tions and the public loss when
savings are wasted. He commends
the Iowa Bankers association for its
action touching on stock fiotation
and adds that "the bankers have for
more to gain by safeguarding their
communities against doubtful invest :
+ menus than from any T1o.ito tm1-
such transactions may yield Incl
dentally TO them"
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