Evening star., 1940-05-29
WASHINGTON 6, WEDNESDAY 49, 1910
/. B. A. Pushes Drive
Against Obstacles
To Financing
Investment Bonkers
Rush QUESTIONABLE
As First Step
BY J. G. DONLEY,

10 uSt SASP
BY J. G. DONLEY.
Released by Consolidated News Features.
NEW YORK, May 20. - When
business men get ready to do some
thing, they can, and do sometimes,
move pretty fast. Rapid progress
being made on the Investment
Bankers Association program for
opening UP the capital markets by
blasting the log-jam of ill-consid-
cred impediments and dictatorial
rules is an instance in point.
1t is only a little more than two
weeks ago that the I. B. A. met in
convention at White Sulphur
Springs, w. Va, and adopted some
suggestions for public relations
program. Already, as this is writ
ten, the mails are loaded with a
questionnaire to members which is
part of the first step in that pro-
gram.
In reporting to members on action
taken at the recent convention, the
man who has become the first paid
head of the I. B. A., re-emphasized
statement made last October.
THE most important contribution
this association can make toward
preparedness" said Emmett F..
Connely, 'is to remove, so far as
it lies in our power. every obstacle
every bottle meek, every restraining
influence that stands in the way
Of the free flow of investment funds
into industry"
Fear Intervention.
MIR. Connely also reminded mem
bers that a guest speaker said, "un-
less private finance breaks down
barriers and provides the new cap
ital necessary for the industrial
side of national defense. the Gov
ernment is surely going to take
over the job"
Realization of the truth of that
admonition is the spur that has set
the I. B. A. of at fast clip on that
assignment of breaking down bar
riers. At the White Sulphur Springs
meeting, the association retained a
public relations counselor who, to
quote Mr.. Connely again, outlined
to the board a plan of approach
to our problem that was so obvious
ly practical and worth while that
1t was adopted with spontaneous
enthusiasm"
Putting first things first, the I. B.
A. plans to load its guns with facts
dug out through research. It is the
flrst step in this research program
that is now being taken. AS out
lined by Bronson Bachelor, now
installed as public relations adviser
to the association, THE first step
is factual research within the I. B.
A. membership itself. This is the
collection of necessary evidence to
support the arguments for change
IN present administrative practices. -
Search for Facts.
In this first step of self-analysis,
the I. B. A. evideatly intends to
get right down to brass tacks, for
the QUESTIONABLE blanks, running
to several pages, are designed to do
a searching job of faat-fnding
Members are being asked to pro-
vide. confldentially, an x-ray picture
OF their business as of May 81, .194o,
and a history of their operations
over the last five years. The ques-
tlonnalre aims to get facts never
before assembled about the invest
ment banking business. Included
will be figures on capital employed
volume of business, profits and
losses, the number of employees and
executives and their COMPENSATION
In aggregate figures and by income
groups.
Also covered is participation of
L. b. A. houses, as underwriters or
members of selling groups, in the
issuance of new securities. A five
year history is requested in this
phase of the business. Members are
also asked to show whether activi-
ties in this connection contributed
TO business expansion or recovery
and increased employment. Specifi-
cally, the QUESTIONABLE asks I'm
what way the financing contributed
to the building up of the Nation
factors of production or useful cap
ltal equipment-did it result in the
construction of a new factory Gre
ating employment? A new railway
train? A new bridge? A new road?
New airplanes? Or. otherwise con-
tribute to the Nations supply of
useful and effective capital goods?r
The second step in the I. B. A. re-
search program will be concerned
with the overall problem of a
planned economy versus the free
enterprise SYSTEM" and the third
step will dig into Government ac-
tivities in the fields of finance" It
is a broad program of know your
self: know your enemies" Only in
that way can the strongest argu-
ments be brought to bear upon the
weakest points in the opposition.