The Cordova daily times., 1923-02-19
WARNS AGAINST BUNK BONDS
 ANDSTOCKS

KANSAS CITY, Feb. 19. - Persist ent and increasing effort or the part of interruptions brokers and financial sharpers to secure control or posses sion of maturing Victory Notes and War Savings Certificates in exchange for questionable or worthless bonds and stocks has impelled the United States Treasury Department to repeat l the warning issued by Secretary Mel lon at the first of the year to hold CTS of such Government securities, said John A. Prescott, President of the | Investment Bankers Association of America. I "In addition the Department has strongly endorsed the action of the Investment Bankers Association of America which recently adopted a res olution prohibiting it's members from conducting campaigns for the trading out of Liberty Bonds, Victory Notes and War Savings Certificates into other securities" added MT. Prescott who received the Governments en- dorsement and approval of the Asso- ciation's action.
 The President asserts that the pres ent redemption of Victory Notes and War Savings Certificates, amounting in the first case to total of $700,000, 900 and in the other to the sum of S625 ,O00OO0, lends fertile field to the activities of such interruptions stock promoters.
 "These maturing Government se- curities 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 mat ters" says President Prescott. Tt is this class of men and women who are being imposed upon by the pro- motors of fraudulent securities. "To protect people who apply to them for advice in the matter many bankers are strongly recommending the reinvestment of such funds ln other Government securities or other sound investments of proven worth.
 "The resolution adopted by the h. yestment Bankers Association Of | America declares all members of the Association are hereby requested to refrain from any campaigns conduct ed either by public appeal circulars, advertisements, or the concerted ac- | tion on the part of salesmen, which have for their purpose the inducing of owners of United States Govern ment securities to exchange same for other forms of investments and that | all members of this Association are urged to use all possible influence in i causing others to refrain from using similar campaigns
 "The following simple rules have been suggested by investment bank CTS of wide experience as an acid test for investors:
 Rule 1.-Never permit salesman to rush you in buying by the argu- ment that the securities will be sold over night.
 Rule 3.-Confine your investment transactions to investment houses and bankers of established reputation and responsibility.
 Rule 4.-Do not deal with total strangers.
 l Rule Eff your commercial or 1n' vestment bankers recommendation is to let the securities alone, do so.
 "The Treasury Department states that there are still more than $2OO,- 0O0,OOO of U. S. Victory 4A per cent Notes of the Series A, B, c, D, E, and F, which are called for payment on December 18th but have not been pre- sented 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 presented for payment"