The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1922-10-26
KANSAS SENATOR
URGES EDUCATION
IN INVESTMENTS
Savings Lost to Stock
Sharks Total Vast
Yearly Sum
MANY ARE IGNORANT
Learn First, Spend After,
Is His Advice to
New Investor.
BY ARTHUR CAPPER.

Editors Note.-Senator Arthur Cap
per Of Kansas was for many years
head Of a string Of papers, both daily
and weekly, the latter farm papers
with immense calculations. Thou
sands of his subscribers fell victim to
men with stock schemes and blue-sky
sales and thousands of them wrote
to the editor and publisher asking
his advice. In the following, he gives
that advice to all who care to read
and, as Senator Capper's entire life
is indication of careful advancement,
superior business judgment and the
confidence Of his fellow citizens,
what he has to say may be accepted
without hesitation as the advice Of
one who knows.
Among all the impressive evidence
Of American solidarity during the
war, hardly any was more awakening
than the subscriptions to the Liberty
Loans. The country had not suspect
ed the potential capital fund Of the
American people. 1t vas amazed by
the response of the people to the APP
peals Of the government for funds.
And this establishment grew as n
great loan drive followed another in
swift succession. There seemed to
be no bottom to the popular purse
patriotism.
More than q million subscribers
offered nearly 7 billion dollars for
the government bonds. This was the
elimination. The fifth loan was for
a smaller amount, which was over
subscribed, like all its predecessors.
Here, out Of the income of two
years, a minimum of 81 million per-
sons had subscribed for some % bill
lions of war loans.
Only Books Showed.
Until this exhibit of the potential
savings or capital fund Of the people
the only concrete indication Of this
fund was the books of the savings
banks, which prior to the wal showed
upwards Of IL million %depositors with
balances Of above 5 billion dollars
And 1t may be remarked incidentally
here that three years after the war,
Notwithstanding the huge Liberty
Bond payments, savings deposits not
only have not declined but have in
creased by a billion dollars, with an
increase net of 100000 depositors.
The effect produced by this extraor-
binary demonstration of the savings
capacity of the people is seer in sew
eral organizations, governmental and
private, since formed to promote saw
ing and thrift by publicity propa-
ganda. The Treasury Department
conducts such a publicity campaign,
the Reserve Banks also and one or
two private organizations, all urging
the people to save.
Campaign Is Needed.
While the government and other
agencies are very active in e%ndeavor-
ing to induce people to save, 1t is
directed to the n%on-savers, and the
only systematic campaign to help the
savers to preserve their savings by
judicious investment Is a constant
campaign In behalf of Treasury
notes, short-time investments.
On the other hand, there is unin-
terrupted bombardment of savers by
swindling stock promoters and an
even more injurious crusade by well
meaning but i~ll-advised promoters of
new enterprises, wholly untried, usu-
ally undercapitalized, in such specu-
~lations as oil and mining and similar
ventures.
At a hearing before the Judiciary
Committee Of the House in the pres
emit session Of Congress the Federal
Reserve Board asked for additional
legislation to protect savers from
~swindling stock jobbers, the board
making the statment that in the last
yea these swindles had taken from
the American people more than half
A billion of their saved capital. Prob
ably injudicious speculations took a
very much larger sum.
Private institutions engaged in le-
climate bond, mortgage and o.her
investments, it seems to me, should
awake to the duty Of educating the Il
million savers Of capital in the
United States in caring for their cap
ital, once saved. The people need a
campaign of primary education on
what capital is, and what investment
is. They unstintingly deny themselves
Injuries in order to save, and bill
lions of this saved capital, of meal
culable value to the nation and all
its industries, regularly are wasted in
speculation.
Many Are Ignorant.
Students of this subject report that
il is not the unframed mechanic and
artisan alone who is ignorant of the
A B C of investment, but among the
victims of promotion are merchants,
professional men, and even bankers
Billions Of dollars wisely invested
every year which heretofore have
been d~issipated in speculation will
evidently have a capital effect in NIT
igating p%anics, business depression
and unemployment. An increase
such as it sens there Is an opportun'
ity to secure, in the annual mere
ment Of saved capital that will be
permanently saved by sound invest
ment, will be steadily enlarging the
national capital fund at a greater
rate than heretofore, lower the cost
and price of capital, give to every
kind Of legitimate enterprise a great
err sense Of security and courage
tend to a steadier employment Of
labor and to a lowered price leve'
and cost Of living, consequently q
higher standard Of living.
The country should not permit Tho
opportunity to slip by which The
Liberty Loan experience opens to IL
Of adding yearly to the capital funt
the greater savings Of the people. A
systematic, intelligent, organized at
tempt should be made to counteract
the propaganda Of promoters, moi
merely in the negative way of legis'
lation against criminal practice, but
by positive propaganda setting forth
the superior attractions of Safety
First In investment.
Beware Promoter.
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