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Show j LIBERTY BONDS AS INVESTMENTS Have Served to Aid in Float-l Float-l ing More Wildcat Securities Than in Peace Times. WASHINGTON, July 2-1. Propaganda Propagan-da educating the public to the value of Liberty bonds as investments has served to aid the flotation of many times more wildcat securities than in peace times. This was asserted today by Louis B. Franklin, director of Liberty Li-berty loan organization for the treasury, treas-ury, at a conference of government j agencies and other organizations, call- ed by the capital issues committee to I consider means of suppressing highly speculative promotion and development develop-ment enterprises during the war. ' Other speakers said the sale of wild cat stocks and bonds has increased many fold within the last year, owing to high wages and the willingness of promoters to take Liberty bonds in payment A nationwide system of j minimizing this form of fraud was arranged, ar-ranged, with the co-operation of the I American Bankers' association, Investment Invest-ment Bankers association, United States Chamber of Commerce, Associated Asso-ciated Advertising clubs and government govern-ment departments. Mr. Kranklin said the success of Liberty loan campaigns had taught promoters new lessons in the marketing market-ing of their securities. These men had virtually thrown away their old "sucker lists" he said, and solicited thousands of wage earners with the plea that government requirements for oil, coal and other products demanded y that patriotic citizens loan money for development of new wells, mines or 1 factories. I Between eighty and ninety percent , of fraudulent securities now being I marketed arc given in exchange for 1 Liberty bonds, which are sold by tho i promoters, said Mr. Franklin. Between $250,000,000 and $500,000,-000 $500,000,-000 of fraudulent securities, not passed on by the capital issues committee and not recognized by organized investment invest-ment bankers, have been marketed In H the United States within the last year, said Richard. Morse, representing the Investment Bankers' association. This! sum is lost both to the Individual purchasers pur-chasers and to the government, he explained. ex-plained. These "wild cat" securities have not been submitted to the capital issues committee for approval although the committee is authorized to pass on all issues of stocks, bonds or notes of ! more than $100,000, determining whether whe-ther they contribute directly to , war purposes. If approval is given, it does not imply specific approval of the value val-ue ot the securities and the committee commit-tee has no power of compulsion. To meet this situation the agencies represented at the conference agreed j to co-oprato with a national vigilance i committee of bankers ahd business men to be organized by the capital issues committee. Wildcat issues will bo investigated and systematic efforts will be made to direct public opinion against them, and to educate small Investors In-vestors .concerning the risks involved. |