New-York tribune., 1921-10-31
Securities Men
Cheerful Over
Rise lin Trade
Investment Bankers, Gath.
cring for New Orleans
Convention, Sec Time of
Financial Gains Ahead
Nation Is Fast Recovering
Delegates TO Urge Better
Standards of Practice TO
Protect Buyers of Bonds
BY Merrylc Stanley Rukeyscr

BY Merrylc Stanley Rukeyscr
NEW ORLEANS, Oct. 3o.--America's
makers and fashioners of investment
securities gathered to-day in this
aus mt metropolis of the South for the
zenith annual convention of the Invest
mcnt Bankers Association of the
United States, which begins tomorrow.
This congress of interme ediaries be-
tween the borrowers and the lenders
of the nation stands out not merely
because It is tho largest in the history
Of the organization, but also because it
IS the first to be held south of the
Mason and Dixon line.
New Orleans is not underestimating
Inc compliment which makes it the
host Of the delegates from the nations
| principal counting rooms. Every re-
source Of the municipality, even the
force that controls the weather, seemed
mobihzed to impress the visitors with
the economic stability as we'll AS the
Auman kindliness of this American
i Gulf port where the influence of the
French Colonials can be seen still on
almost every street corner. The local
feeling is that the holding of the meet
ling here is another effort to draw to-
gether the North and the South.
/ Getting Back to Normal
Special trains from New York, Chi
grago, st. Louis and San Francisco
brought in to-day loads of human
Freight sutfused with cheerful thoughts
regardlng the trend in business. When
s2oy c. Osgood, president Of the In
testmcnt Bankers, stepped off the Chi
cago special and remarked: "The coun-
! try cannot fail TO face time of
financial prosperity" he was summariz-
iar the dominant sentiment among the
rank and file who comprise the 500
2elegates
We cannot help but feel,'' Mr.. Os-
gooc declared, that the South, as we'll
IS the country as a whole, is gaining
k.eadiiy on the upgrade to normal con-
.Eitons. A slight consideration of fun
6amental business affairs must con-
Vince even the doubter that conditions
underlying the commerce and finance
,E The country are sound. The banks
lIave clearly shown that they are in a
found position, and there is no ques-
hon that our great resources have
been left intact. A study of the figures
ii the Federal Reserve statements
shows that the greater part of deha-
ticn is an accomplished fact and that
+ liquidation in broad sense is prac-
| tlcaily over"
Mr.. Oseood is senior officer Of the
First Trust & Savings Bank of Chi
raeo. Members OF the Investment
s2nkers' Association, because of the
sary nature of taeir business, are con-
hrned more with the long range future
a.iaa with superficial temporary fur
res, fcr they extend credit for long
Ne1ieds-fve, ten. twenty y-five years and
more The president in cataloguing
tte slgns CT improving business laid
i tstre7 on the rise in the market place
j.or bends, saying:
Faith in Sound Prosperity
II is probable that the present gen
aTatIon viii not have better oppor-
Asunity 10 purchase sound securities
'leding higher income than at the
prescnt time. Every day the public
l~ealizes more clearly that the repre-
ssntations made by investment bankers
.Ile good standing can be depended on.
"flhis is q time for faith in sound, fu-
tlsre prosperity of the country, and a
r fealization that every dollar invested
aIaOw sound securities not only is q
isesor IN aiding prosperity, but cannot
iall to insure excellent returns to its
ii fffneF Tor years to come"
-Ifei cn1ugn 10 fight the tendency of
lJolle- to loaf. After inducing saving,
the ',aow il is equally important to
. elvert tho funds into proper channels.
&c III. distinction raises moral and legal
'liQues i3i.s. aad cne of the main tasks of
lIils convention viii be to shed fresh
: hight or the subject Of banking ethics.
est year the subject was approached
fom more selfish standpoint The
: iFelegatcs were concerned with code
, To- practice which would make whole
salers and retailers Of bonds play fair
q lFth other factors IN the trade. There
Ihas been a tremendous improvement in
ihe last twelve months in this di-
sdiSeticn.
Fl Buyers to Sellers Market
III Bankers assert that there have been
5Iaewe1 violations Of agreements, such as
slmsiling original offerings below the
lEipu.ated price and "beatng the gu.l
, lag organizations which both originate
Isusiaoss and also, with their associ-
Jstes, act as purveyors of the product to
Inaiyiaual investors. The cynics at
ribute the change TO the fact that the
Iogntry, with the recent Improvement
ia the quotations of investment secu-
Y fHties, has passed from buyers to q
s&jseiiers' market AS result of the shift
"lsesiefs no longer complain of unsal-
Il aole holdings, but lament the fact that
HIaae shelves Of the investment cupboard
are bare. Impartial observers attrlv
iaee THIS to better trade practices.
al This year the association is empha-
1sIhzlns the need of better standards of
!, practice TO protect the consumer of
syiaonds, the ultimate investor. Howard
Beebe, Of Harris Forbes & Co., OF
laew 1ork, who is the unopposed candi-
7 taa'e for the next presidency of the
i ssIassccation, discussed the problem with
u sIas Tribune CORES spondent. He SAID
q fast the investment bankers were op-
!. poSed to extreme blue-sky legislation,
va preferred laws to protect the inno-
sao lnlsrepresent securities more delt-
sIeiy, modelled after the English com
y sshes act, which gives the sellers OF
p sssurites wide latitude rs long as trey
sN the truth. Misbranding of securi-
/, YES Is crime, Mr.. Beebe insists, and
; 4 lsasusd be punished by law.
~ Opposes Commissions Policy
W Reebc said he thought it mis-
ssAe Tor blue sky commissions, such
the' one with wide powers in
a'siana. to attempt to rate all new
aflty offerings. separating the
ssR from the goats. He based his
X!sctlons on the ground that the plan
.sOinbersome, causing legitimate deal
much unnecessary bother; that it
cestly and the cost eventually falls
ehe Dor over, and that it is i'm
sss9eal for a commission to pass on