Evening star., 1922-09-17
BY /. A. FLEMING.

large and varied sources of informa-
tion and close personal insight into
financial affairs given only to really
big financiers.
His judgment of the money market
during the year to date has been
perfect Oid-time bankers have ex-
pressed surprise at his ability in this
line. They have wondered at the
temerity that suggested a 3A per
cent Treasury certificate issue: they
have been surprised at the success
that has attended. where the best
they expected was but a mediocre
success.
Not once, but several times, they
have looked for rates of at least
4 per cent on certificates and consid-
cred that the market demanded IT,
but Mr.. Mellon, knowing the pulse
ket, has gone on his own way to
success. Investors have taken over
his offerings and almost on bended
knees asked for more.
His latest diagnosis of the one
year certificate market is. probably,
one of his most pleasing and salts.
factory victories-the f1otauon OF
one-year certificates at 34 per cent,
dated September 5. when the field OF
investment was offering and ~
per cent opportunities just as good
in every way-liberty bonds, too.
The Secretary is always feeling the
pulse of the money market, while ne
is evidently getting ready to put over
longtime bond issue-when the
demand is so urgent that absorption
is sure-and to a layman. not blessed
with the inner sight, 1T LOOKS as IL
that time was near at hand.
And that is not all this able Sec
retary has accomplished. More than
almost any one cause his actions IN
keeping flotations OF temporary
sponsible for the continued advance
in liberty bonds. Every time the
street has absorbed a lower rate
issue the libertys have been inflated
a Iittle-adding to their value
And he has helped the entire IN IN
day all Treasury certificates. no mat.
ter what the low rate at whlcn put
out, are salable at par to premium.
Bankers Give Him o. n.
Secretary Mellon has been given
the official o. X. of. the bankers OF
the country, and their only nope IN
which he seems to be connecteu 10
that he will be permitted to work. out
the complicated financial anairs OF
the Harding administration without
being pestered with politicians. Tor
he is one man that will not stand
for pestering: he doesn't have to!
He offered 3& per cent certificates
and the general public rather than the
bankers sent in subscriptions Tor
$540.0O0,000 when but $2oo,ooo'ooo
was offered.
Score another triumph In financing.
You may believe 1t or not, but
the general feeling among the IN
vestors of the United States Is that
whatever Secretary Mellon does or
{rS.a ant
about right 1t is also a fact that
the average investor hesitates to pay
over par for libertys after having
seen them selling in the SOS.
Even some of our local bankers
considered that the rate OF the most
recent certificate issue was entirely
too low and refused to purchase save
for their customers.
During the last week there has
been some slight trend of the money
market toward. higher leyels. with
predictions of per cent during the
fan and early winter months on the
betterment in business and the heavy
movement of crops and coal to mar
ket. Then. too. business men are
counting on decided improvement
in the retail trade this fall.
IT Doesn't Look 1t.
But against all this evidence of
strengthening. against the claims
that the investors of the country
have about placed their funds and
that bonds have reached nearly their
high. We find that s54o.O00,o00 was
subscribed. on Secretary Melons
judgment. for 3a per cent certifi-
Gates.
In common with other bankers the
country over. the Secretary of the
Treasury is opposed to the bonus
especially at this time when the
Treasury Of the United States is a
borrower. perpetual and periodical.
depending on the people to finance Its
needs Yet this is great creditor
nation. but it's creditors are in peck
of trouble and have to be nursed
along in the hope Of being able,
eventually, to make good.
Investors Peculiar People.
After all. investors are peculiar
people: the safe and sane of the class
follow the Secretary of .he Treasury
and the advice of their bankers. being
further strengthened in their views
tainable concerning the state. city.
county or corporation standing back
of the bonds under consideration.
There is another class of investor,
who studies nothing but the rate Of
return.
saleswomen lay in wait for him from
the rising of the sun to the going
down thereof.
This particular investment class
was meat and drink for Ponzi and
while the latter has been accommodating
years in jail his numerous and rapidly
increasin gullibles have been sending
their dollars and whatever safe and
sane securities they may have ac-
ouired by inheritance. over into the
dim and distant beyond, In an almost
endless chain.
The past week has developed the
swindling of many local people out
of much money. but the next plausible
proposition Will get the cash just the
same. ,
yet Ponzi imitators are using his
tools and reaping his fields even while
he is incarcerated.
An Experts View.
Eugene E. Thompson, chulrman of
the committee of the District Bankers
Association charged with the task OF
investigating fraudulent stock issues.
etc. declares that millions nave Deen
taken out OF tn town.
A blind pool concern. nreo by law
from Baltimore. located here. opened
for a day or two ana then. not having
New York ticker to make sc od the
bluff, quit.
all. This is the modus operand1, ac-
cording to Mr.. Thompson:
ION an advancing marke- the blind !
pool announces that. during the
month 1t has purchased SO many
larger larger amount IN Of another, and so on,
taking the near low prices of the month
as the purchase price. Then we have
sold repeating the list, giving The top
prices, and have made such and such
an amount"
"Now il they had made these
trades" said Mr.. Thompson, ut would
have been all right to have paid a
eood dividend from the profit. but as