The Washington times., 1922-10-12
FINANCE.
- AND |
RUsINEss
~ q. c. FORBES.

i" ~ L
ny q. c. FORBES
The only way that ;savings can
earn interest or dividends 10 through
putting them to work. ("
Savings today most often earn
an income through being invested
an bonds and stocks.
The men who are chiefly respon-
s!hle for distributing high-grade an
yesfments are holding an important
convention this week at Del None.
Cal.
The members Of the Investment
rsankers Association occupy q vitality
important position in the modern
scheme OF tnIngs, a position which Is
constantly becomng more response
Vie, seeing that the number Of savers
anu investors ~ steadily multiplying
and that the, applications for capttai
are becoming more and more nunicr-
ous, thus throwing upon these In.
vestment bankers the responsibility
OF selecting the right kind of offer
mgs and turning aown the wrong
KIND. NJ k'., ~ p. ....
1t Is fitting that the far West
should have been selected as the
meeting place.
Why?
Apart from reasons connected
with the beauty and other attrac.
| tiveness Of California and the won.
derful hospitality this State knows
80 well how TO dispense, there IL q
more fundamental and far-reachine
| reason.
During the coming years the West
will make enormous demands upon
| the inevitable capital Of the people
of this country. In the past The
main demands Tor capital have come
from enterprises located In the last
ern and Middle Western sections.
Anyone familiar with what's wh.,
| throughout the western half OF the
contiIfent must realize that the com
| ing developments there will be on
a scale Tar beyond anything heI e
tofore known. That the West Is
| iipe for faster development than the
East cannot be doubted. 49,
Yet the ignorance of the majority
Of our 11O,OO0,000 population con
cerning the resources, the poten'
tialities and the prospects VI the
| West is a matter well calculated 10
cause concern among those upon
whom will devolve the task Of rails
ing The capital necessary for the
prospective developments through
out the West. II has been aptiy
said that we fear what we do no,
know and do not understand. This
Is true concerning investors and in,
vestments. We hesitate to invcs,
our savings In projects about which
we know httle.o nothing. ~
Unquestionably, quite q percent.
age Of the investment bankers CT
America have q very incomplete
understanding Of the present-day
status OF the West and a still
poorer understanding of what 10 in
store for the West in the way Of in
dustrial, mineral, agricultural, com.
merical and financial development.
Therefore. at eastosomething Will
be accomplished, by Athe journeyhg
of so many of our leading invest.
n1ent bankers across ithe continent
and the sights and experiences they
will enjoy while on the Pacific
Coast.
Now that bonds and stocks are
being purchased. not by a relative
ly small number of more or less
wealthy individuals, estates, inst.-
tutions. etc, but are, attracting
the savings o. all classes in the
land, the responsibility of security
selling firms and companies has
become and Is continually becGm.
ing greater. II Is essential tina:
investment bankers should exercise
the most scrupulVus care before con.
senting to sponsor the distribution
of bonds or stocks among the
public. II our Investment bankers
devote themselves with every pos
sible diligence to investigating the
real merits of securities before
agreeing to vend them, and II they
develop the arts of advertising and
salesmanship to the highest degree,
then fewer hundreds Of millions of
dollars will go annually into the
pockets of shameless adventures and
misguided enthusiasts.
As I read the future, the raising
Of all the capital which will be
necessary to develop Americas re-
sources and American enterprises
will become increasingly difficult,
SO enormous will be the demand.
If this reasoning be correct. then
It is Of deep national importance
that our investment bankers strive
with all their powers to improve
their knowledge. their abilities and
their methods. for no country can
develop faster than its procurable
capital resources will permit.
So you see that investment bank
ers and their activities have a di,
rect bearing upon the wellbeing Of
us all.
Copyright. ise2, by B. C. ForLes)
DEMOCRATS HOLD RACcY
IN FROSTBURC TOWN NALL