Evening star., 1924-09-23
BANKERS SDOMORE
T0A|D|NvEST0RS
Convention Told Confidence
and Advertising Are Most
Vital Factors.
BY J. C. ROYLE.

BY J. C. RoYLE.
Special Dispa tch to The Star.
CLEVELAND. September 23.-There
is going to be ample capital available
in the next year to meet the require
ments of the commerce trade and in
dustry of the United States, accord
ing to Thomas N. Dysart of st. Louis,
who will be the next president of the
Investment Bankers Association of
America. now in convention here.
Two things. Mr.. Dysart said today,
are going to bring this needed cap
ital into channels of distribution
confidence and advertising.
THE investors of the country both
small and great. are getting to know
their bankers better and use them
more Mr.. Dysart added. They have
found that reliable investment bank
ers can give them the same expert
advice in making their dollars work
efficiently and safely for them that
a consulting mechanical. Industrial,
electrical or mining engineer gives
his clients.
Bankers Seek Better Service.
They know that no reputable bank
er willingly sees his patrons put
their funds into uncertain invest
ments. If they lose money he loses
client, and without clients he
would soon cease to be an investment
banker. Members of the Investment
Bankers Association hold firm to the
policy not only that those with idle
dollars should invest them, but that
they should investigate both the Sc
curities they buy and the house
through which they buy them
This has established confidence
on the part of those whose money
Will serve in the future to keep the
wheels of American industry at a
faster pace. Confidence will undoubt-
eoly be strengthened by the campaign
OF advertising and education which
the association have in view
DO Enormous Business.
An idea of what widespread effect
this campaign is to have on American
business can be gathered from the
tact that the investment houses be-
longing to the association have sold
total of more than $90. 1000 00O, 900 Of
investment securities, the money from
which has put new life-blood into the
veins of industry. In the first eight
months of 1924. the new financing in
the form of bonds and investment
stocks placed has totaled more than
1854, 100000 or this sum more than
$3.50, 100000 was in munition securi-
ties. Public utility stocks and bonds
accounted for over $1,000, 900, 900.
There is every reason to believe that
the new capital which will go into
the business of the United States by
1ext January l will exceed s6,000,00
The men responsible for the invest
nent of the larger part of this great
sum of the public's money are plac-
ing increasing stress on the necessi-
ties that investment securities shall
be secure SO far as the investor is
concerned Mr.. Dysart, who will hold
the helm of the association craft for
the coming year, is known as the
sponsor of one of the blue sky law
which have teeth in it. Warren S.
Hayden of Cleveland also placed en-
phasis on the necessity Of safety to-
day in speaking of moral risk
Greater Safety Urged.
Beyond material resources" he
said. there are intangible elements
of security which those who have a
hand in investing the public's money
ought to think about. When one
lends money, which, in effect the in
vestor does, he believes the debtor
will be able and willing to pay, but
back of that Willingness he expects
that there will be a sense of obliGa-
ton to pay. That is what we must
have in mind when we talk of
moral risk. We have faith in moral
worth. The basis for that faith is
our belief that in each locality there
are intelligent, well intending. well
informed individuals, conspicuously
placed or otherwise, who in the end
determine what opinion shall be in
that community and who are certain
to see to it that the moral risk OF
legitimate investment shall not only
be safe today, or reasonably SO, but
that it shall be better as time goes
on"
George Caldwell of New York
founder of the association, declared
that investment banking today is
conducted entirely with the though,
of safety, not the thought of specu-
lation.
More AdvertisinE Needed.
John w. Prentiss of New York, re-
firing president of the association
said: I'VE all know that one Of the
quickest ways to get the attention OF
the public is by advertising. We have
all seen great industries built up al
most entirely through advertising. We
have something to sell to the public
In order to sell successfully our goods
to the public. we must first sell our
selves, sell the honesty of our buSl-
ness, sell the economic necessity Of
our business and sell the idea to the
public that if they are going to buy
securities, the first thing they want
to do is to go to an honest dealer in
securities"
Losses Reduced to Minimum.
Frederick r. Fenton, secretary of
the association, declared that tranSac-
tions had with members of the asso-
citation had reduced the chances of
loss through worthless securities to
the lowest point in history.
Members and officers of the associ-
alton are giving full credit to the
newspapers for their aid in educat-
ing savers and investors through re-
liable and interesting financial news
pages and many strongly favor re-
stricting the advertising campaign of
members largely to such publications.
5000. 600 AUTOMOBILE