San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1923-10-31
Bankers Say There Is Plen-
ty of Money for In
vestment in u. S.
MANY MATTERS UP
German Loan VIII Be De-
layed Until Middle :
Z Strengthened Out.
BY j. c. ROYLE.


Washington, d. C., Oct. 31.-There
is plenty of money for investment
throughout the United States. That IL
the general consensus Of opinion
among the delegates to the convention
of the Investment Bankers Associa-
ton. Of America in session here. With
the fact in view the convention is de-
voting its energies toward the safe
guarding of that money, through
Standardization of practice among IN
vestment houses and strict enforce
ment Of the ethical policies of the as
. ISOLATION.
This purpose is not undertaken
from purely altruistic motives. Invest
ment bankers have come to realize
fully that the investor must be afford
ed protection from loss if he is TO COZ
tinue to be an investor and the mar
keting of bonds and other investment
securities is to be placed on a sound
profitable basis for the originating
and distributing bond houses.
Members of both the outgoing and
incoming administrations of the asso-
citation declare that the purchaser of
investment securities will be provided
with more adequate protection and
more constructive advice than ever be-
kfore and that warnings against unsafe
and fraudulent issues will he suppre-
mented to the public by sound bastc
information on the principles of prof
liable investment.
One of the subjects uppermost in
the discussion of delegates is the strict
enforcement. of syndicate agreecents
among both originating and distribut
ing bond houses. Such rigid regula-
ton, delegates say, will serve to check
the practice of beating the gun in
offering issues to clients and the cut
ting of syndicate prices. 1t will also
serve to obviate participation i'll new
issues for purely speculative purposes
and stabilize the bond markets OF tn
country, delegates claim.
Subjects Brought Up.
Many Of the bankers expressed the
belief that the quick absorption Of the
Federal Land Bank and the Illinois
state issues had placed the investments
market on a more favorable footing
and that there would be fairly wide
movement in the near future in mu
nicipal bonds.
In this connection the committee
on municipal securities went on record
as strongly urging that the maturity
of obligations contracted by states
and their political Subdivisions pc
strictly limited to the reasonable LIE
of the improvement. to provide which
the obligation was contracted. In other
words the association favors regula'
ton by which the repayment of sucn
obligations will fall on the voters VINO
approve their issue rather than On
future generations.
Public utility financing also is com
ing in for active attention on the
part of the bankers in view of the ex'
pected activity in that Investment di'
vision. The changed attitude of the
public toward public utilities is max
ing popular the financing OF improve
ment programs and capital require
ments of utility companies with tEe
investors OF the communities where
the utilities are located and this move
ment is spreading widely throughout
the country.
The representative bankers IA
sembled here show little apprehension
of the effect of foreign issues, al.
though it is conceded that such financ.
ing is in prospect. A German loan,
il is felt. must wait on determine.
tion of the extent to which the assets
of that country are to be m0rtgaged
by the repara tons question. The fact
that any loan to Japan. participated
in by American investors, probably
will provide that the money so ac-
yanced shall be spent here will tend to
prevent the sums involved from being
removed from circulation and reinvesr'
ReAnt,
To Consider Expressions.
The expressions of the officers of
the association on international az
fairs. however, made as they are in
the national capital, are expected te
receive earnest consideration from
government officials. This is the case
also in regard TO government financ-
ing and high officials of the govern
ment have already had extensive con-
ference with the bankers present. The
general feeling expressed by the lat
ter was somewhat opposed to the issue
of tax-frce securities.
Business in general, according to-
men from widely separate sections
hnl, be expected to continue its steady
march OF progress unless lncreuseu
wage demands or price advances raise
hills which will slow its pace. The
building movement. according TO Pres
material costs have sewed of ftheI
ident John A. Prescott, has not
reached its peak unless the wage and
peak aconsiderable distance below its
apcx. Methods of real estate and
building financing in consequence are
being vigorously debated by the con-
vention.