Evening star., 1923-10-30
BANKERS CORDIAL
TOCOOL|DGEPLEA
Pledge More Aid to Small In
vestors-Losses Startling.
Convention Comment.
BY }. C. ROYLE.


"the little fellow" were widely dis
cussed by delegates to the conven-
tion of the Investment Bankers As
sociation of America today. The
bankers have taken President Coo
lidge's plea for the protection Of the
small investor thoroughly to heart
and pledged themselves. through the
report of the government bond COM
mittee. to combat actively any move
ment to induce investors to trade lib
erty bonds or other government Sc
curities for investments of q lower
grade.
The natural sequence of such cam
paigns. the bankers pointed out, was
the trapping of the unframed Invest
or by unscrupulous dealers and sharp
ers, who are preying constantly on
the unwary and taking millions out
OF the legitimate investment field and
productive industry.
Many Investors Asleep.
The need of the small investor for
sound financial instruction and advice
was strikingly emphasized to the
convention by the fast that ignorant
holders of matured victory notes and
war savings certificates are losing
S7,3l6 day in interest because they
have failed to present $4,000, 900
worth Of the former and s22, ,oOO,Oo
ment In addition o 'er half a million
liberty bond buyers have not ex-
changed their temporary liberty
bonds Tor permanent, and consequently
nave not been paid the interest on their
investment for four years.
Investment bankers always lave an
preciated the ya.ue of the business Of
the small investor and the pussioili-
ties OF its further development, espe-
cially s.nce the widespread distribu
tion of liberty bonds. The question
mas always been the difficulty of es-
taolisning contact ii rough regular
bond house channels, and the cost of
selllng legitimate securities to the
smaller buyers The average sale of
many of the well known bond houses
Is above $4,000. and it costs prac-
Lically as much to make a sale of
$1,000 or less as to dispose of the
larger amounts.
Small Investors Wanted.
TIE fie of tie small buyer, how
ever, has scarcely been touched. and
bankers, realizing that the small IN
Vestor OF today is the large investor
or tomorrow, are going after this
business. AS their work at the be-
ginning must be largely educational,
tne campaign undoubtedly will in
volVe the expenditure of large sums
IN advertising and Il e distribution of
wei conceived publicity was strongly
ton.
:. Members of the committee on pub-
lie service securities pointed ou, that the
particular advantages of tn .se securities
IN the small investor field, stating that
the public utilities industry were
needs OF the Industry. amounting TO
about S1,000,oG0,0O0 a year, presented
oppGrtun.tles pgrptI a Tor wider security
a chance to gain attractive yields
based on sound industry. 1t is
worthy or note in this connection
that many of the sales of utility Sc
curities are being made on a partial
payment basis.
alone RuIer Opposed.
The committee on public service
securities placed itself strongly on
record as opposed to home rule"
regulation of public utilities. and as
faVoring statewide regulation! When
administered with the broadest
powers and in judicial manner, the
tion afforded the best guarantees in
vestors could have for the main
tenance of the integrity of their in
vestment. and where statewide reg
ulation did not exist there was lack
of development which adversely af-
fected cost of service TO the consum-
er. Uniformity of state regulation
was urged in view of the develop
long distance high tension power
transmission, are leaping state
boundaries
The conSentlon. through the COM
mittee report, went on record as
holding that electric railway service
was essential to the community for
heavy traffic, and that trackless
trolley and bus line competition
should be supplemental to the main
systems of transportation.
Credit Almost Too Abundant.
Attention of the bankers was called
today to the ease with which farm
ers may secure long-term credit from
the federal and joint stock land
banks and shorter term credit from
the intermediate agricultural banks
This, 1t was asserted, has caused
many farmers to go in debt to a point
where they are unable to withstand
u slump in productiveness or in the
prices of agricultural products. Bank
ers were warned that farm loan ap-
praisals should be made with the
greatest care and special considera-
tion given in each instance to the
productive value of the farms in
volved. The delegates from many
sections made 1t plain that the one
CROP farmer was becoming unpopu-