Watauga Democrat. [volume] (Boone, Watauga County, N.C.) 1888-current, 1923-02-15
WORTHLESS STOCK
ANDBONDSSWEEP
THE ENTIRE LAND
Warnings are Sent Out to People
Ito Beware of Financial Paper with
out Ample Support and Worth.

KANSAS CITY, MO. Feb. .. Per-
sistent and increasing effort on the
part of unscrupulous brokers and
financial sharpers to secure con-
troll or possession Of maturing VIC
tory notes and war savings certifi-
Gates in exchange for questionable
or worthless bonds and stocks has
impelled the United States treasury
department to repeat the warning
issued by secretary Mellon at the
first of the year to holders of such
government securities. John A.
Prescott, president Of the Invest
ment Bankers Association of Am
erica said here today.
'In addition the department has
strongly endorsed the action of the
Investment Bankers Association
of America which recently adopted
a resolution prohibiting its member
from conducting campaigns for, the
trading out of liberty bonds, victory
notes and war savings certificates in
to other securities" added Mr.. Pres
colt, who received today the govern
ments endorsement and approval of
the associations plans.
The president asserts that the pres
ent redemption of victory notes and
war savings certificates amounting in
the first place to a total of $780,
100000 and inthe other to the sum
of 1925, 100000, lends fertile field
to the activities of such unscrupulous
stock promoters.
These maturing government sec
uritites are held by large number
of people who invested in them dur
ing the war from patriotic motives
but who never before had made any
investments and who therefore have
little or no experience in such matters
says President Prescott" ''It is this
class of men and women who are
being imposed upon by the promo
ters of fraudulent securities.
"To protect people who apply to
them for advice inthe matter many
bankers are strongly recommending
the reinvestment of such funds in
other government securities or otherf
sound investments of proven worth.
"The resolution adopted by the In
vestment Bankers Association Of A
merica declares that all members of |
the association are hereby requested
to refrain from any campaigns con-
Quoted either by public appeal circu-
lars, advertisements or the concerted
action on the part of statesmen, which
have for their purpose the inducing
of owners of united States govern
ment securities 10 exchange some
for other foIms of investments and
that all members of this association
in caes.ng others to refrain from US
ing Silni.ar campaigns"
'1ne following simple rules have
been suggested Dy inv yestment bank
ers OF wide experience as an acid test
1or investors:
'sRu!o Never permit salesman
to rusf you into buying by the argu-
ment that the securities might be sold |
over night.
"Rule 2.-Take the literature and
the salesman's statement to your in
vestment banker for analysis and in
vestigation.
"Rule 3.-Confne your investment
transactions to investment houses and
bankers of established reputation and
responsibility.
"Rule 4.-Do not deal with total
strangers.
"Rule 5.-If your commercial or
investment bankers recommendation
is to let the securities alone do so.
"The treasury department states
that there are still more than $780,
100000 of United States victory
Sd per cent notes of the series A, B,
C, D, E, and F which were called for
payment on December 18th but have
not been presented for payment.
"The treasury department further
announces that it will retire the un-
called victory notes at any time at
100 and accrued interest if present.
ed for payment"
TURKS HAVE BEGUN LAYING
A O