Evening star., 1923-10-30
U. S. CLEAR OF DEBT
BY 1852, is PREDICTED
CONTINUED from EYrx. p,r.,

NSonlInQed IIOm FlrSt Page.1
debt. which cannot be presently met,
to maturity dates within the next
thirty years is sound policy to be
pursued"
Future offerings Of the Treasury.
the undersecretary said. cannot be
determined now. but will depend on
the condition. of the money market
at the time the offerings are made"
Commenting on the under secretary's
address, John A. Prescott OF Kansas
City, president of the association. ex-
nent bankers in the Treasury opera
tions. Some years ago" he said. I'VE
watched with fear and trembling every
announcement from the Treasury, for
the possible effect it might have on
so successfully handled in the last
year or two that the operations Of the
government have moved forward, cre-
ating scarcely ripple in the markets"
$500, 900. 900 Surplus.
David F. Houston. former Secretary
CT Agriculture. later Secretary Of the
Treasury. and now president Of the
Bell Telephone Securities Company,
spoke at length on the operation OF
the Bell Telephone Company. which
he designated the "only private na-
tion-wide institution in America" The
book cost of its plant. he said. not its
value, was approximately $4,000
coo. and its surplus and reserves
nearly s6Oo,000.oo0. "It has had an
nnsroken dividend re, sssorS for over
1T has never passed a dividend: It
has never reduced a dividend"
Generally speaking Of public util--
believe that any public utility that
desires TO do the just thing. and that
has clean character, that Is well
managed. need fear anything of a
public regulatory body amy more than
q good citizen need fear a police
man"
Urging that wage-earners become
"habitual, safe investors" Mr.. Hous-
ton, declared he would not be satis-
fed until every worker In America
Is also capitalist"
the Aerican Electric Railway AS
ISOLATION, declared that the electric
railways had come back" After
strikes. after the great bus adven-
ture," after everything that could
happen to dampen the ardor Of the
investor in electric railways" includ-
ing fixed fares, special taxes, and i'm
posts. paving charges. demands of
labor, strikes, rising costs and now
unrestricted competition. Mr.. Welch
declared, yet still the cars are rum
ming" He quoted at length from the
strengthened position of the electric
railways.
Act to Back o. 8. Beads.
Unscrupulous dealers and sharpers,
said to be "preying constantly on
the small investor owning liberty
bonds and other government securi-
ties" were roundly scored before the
Investment Bankers Association at
the New willard Hotel today by the
government bond committee. which
announced a drive to prevent such
activities.
The unscrupulous dealers Of bonds
and stocks Of q low.grade character
increased their activities, the COM
mittee report said. around May 20.
when the victory notes matured. and
also around July l. when tax-ex-
emption of liberty bonds was reduced
from $160,000 to $4,000. During this
period 1t was felt advisable to again
call to the attention OF our members
(by q written communication to
them) the resolution prohibiting cam
paiRns Of this character. which was
passed at the Del Monte convention" ;"
Tho report, presented oy j. X Ed
wards of Cincinnat.. chairman. said
the committee had been actuated to
work strenuousiy against such sharp
ers by the appeal Of the Treasury 70
the public to hold government Sc
curities, and also because the sharp
ers caused millions to be lost to
the investment deld and to produc-
tive Industry"
Tho committee had been In touch
with members Of the association and
others an we'll to see that mo cam
paigns are instituted. the object Of
which Is to induce investors TO trade
their liberty bonds or other govern
mental securities for bonds or stocks
Of low.grade nature"
Mr.. Edwards said that violations
by members Of the ASSOC. alton ~on
this score were so smalp'. that he