The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1923-02-10
ON
DIGDRIVEF0R
WAR SAVINGS
ecretary Mellon Has Issued
Warming to Holders of
Government Securities


j{ansas City, Mo, Feb. 10.--Per-
sie,cnt and increasing effort on the
pct of unscrupulous brokers and
financial sharpers to secure con-
rol or possession of maturing
Fictory Notes and War Savings
artificates in exchange for ques-
tionable or worthless bonds and
stocks has impelled the United
states Treasury Department to
repeat the warning issued by Sc
cretary Mellon at the first of the
year to holders of such govern
ment securities, John A. Prescott,
President of the Investemnt Bank
ers' Association of America said
here today.
"In addition the Department has
strongly endorsed the action of
rhe Investment Bankers Associa-
zion of America which recently
adopted a resolution prohibiting its
members FROM conducting cam
paigns for the trading ont Of LII
berty Bonds, Victory Notes and
War Savings Certificates into other
securities" added Mr.. Prescott
who received today the govern
n1ent's endorsement and approval
Of the Associations action.
The President asserts that the
present redemption of Victory
Votes and War Savings Certifi-
Gates, amounting in the first case
: to a total of $700,O00,O00 and in
he other to the sum Of $625, O0O,-
20, lends fertile field to the &C
tIfTeities of such INSCRIPTIONS stock
promoters.
These maturing Government
urities are held by a large
lumber of people who invested in
them during the War from patrio-
tc motives but who never before
had made any investments and-who
it.refore have little or no exper-
ieuce in such Matters" says Pres
dent Prescott. ut is this class
Of men and women who are being
imposed upon by the promoters Of
fraudulent securities.
TO protect people who apply
To them for advice in the matter,
I,I.,ny bankers are strongly recon-
lending the reinvestment of such
flnds in other Government securi-
tie; or other sound investments OF
Jrcven worth.
The resolution adopted by the
NJ estment Bankers Association
American declares all members
d the Association are hereby re-
elnsted to refrain from any cam
Jagns conducted either by public
.poeal circulars, advertisements,
the concerted action on the part
f statesmen, which have for their
nrpose the inducing Of owners of
niled States Government secur-
ties to exchange same for other
orms of Investments and that all
uembers of this Association are
= lged to use all possible influence
q causing others to refrain from
ing similar campaigns"
1.-The following simple rules
nave been suggested by investment
~slnkers of wide experience as ar
acid test for investors:
"Rule Never permit sales
nan to rush you into buying by
the argument that the securities
will be sold over night.
"Rule 2-Take the literature and
i ne salesman's statements to your
Investment banker for analysis
and investigation.
Rule 3-Confine your invest
ment transactions to investment
houses and bankers of established
reputation and responsibility.
'Rule 4-Do not deal with total
strangers.
"Rule 5-If your commercial OF
investment bankers recommends.
ton is to let the securities alone
do so.-
"The Treasury Department
states that there are still more
than $500, 100000 of u. S. Victory
AZ % Notes of the Series A, B, C
d, E, and F; which were called fol
payment on December 18th but
have not been presented for pay.
2 ment.
"The Treasury Department,
further announces that it will re-
tire the uncalled Victory Notes at
any time, at 100 and accrued in.
terest, if presented for payment. y