fcoger W. Bftbson Says Investment frusta ahd Bankers Must Cooperate to Avoid Overissuing Securities. ti 4 >a~ (Special to Altoonft Mirror.) 1 BABSON PARK, Mass., June ti.— We prosper only as we serve! That truth IS Just as fundamental in the financial World as .it is In the business world. If our investment bankers, investment trusts, and banking syndicates ,WoUld best serve the public Interest as well as protect their own Interests, they must cooperate to .prevent the recurrent over-production and inflation of securities. They must gauge the legitimate buying power of American investors much more accurately than they did last summer, for example. Never before In history have we seen such a flood of new security issues as we had just prior to the stock market collapse last fall. In the two months of September and October, 1929, $1,612,000,000 new stock and bond issues were floated. The investing public could not absorb them. At least $1,000,000,000 of this amount had to be carried On brokers' loans because they could not be distributed. With credit already strained to the breaking point, brokers' loans already at record levels, and prices dangerously Inflated, this foolish flooding of the market with new Issues was the Hnal straw that precipitated the great- jst stock market crash in history. Investors, Investment trusts, bankers, jyndlcates, and business, all suffered great losses. While an adjustment in stock values was bound to come anyway, the violence of the break would •have been greatly lessened were it not for the large quantities of undigested new securities bearing down upon the market. As we look back upon the financial history of the past year it is clear what ought to have been done. The brakes should have been applied to new securities flotations long before the crash. Instead, in the first three months of last year $2,800,000,000 securities were issued and rights were offered calling for another $1,500,000,000. As Fred L. Kent of the American Bankers association points out, there were $4,000,000,000 of securities that had to be taken by Investors in three months' time. It simply could not be done. Our national income would not permit it. Hence, the resort to inflation of bank credit to carry these securities. The Federal Reserve authorities issued warnings, which were 'promptly disregarded. Investment ,. bankers and investment trusts themselves were led astray by delusions of grandeur. .If they thought about it at all they assumed that the country was so 'wealthy that there -was no limit to its buying power for securities. They lacked guide posts based on statistical study of the sup- 'ply and the legitimate demand for securities. Following the stock market decline there was an abrupt halting of new security issues. The market was no longer favorable to stock flotations. This, however, was like locking the barn door after the horse was stolen! What is needed is some permanent commission or association which will keep our financial leaders posted on the real condition of the money market at all times. The law of supply JJ demand applies to stocks and ids Just as it does to commodities. u cannot over-supply the invest- nt market without disaster to prices any more than you can oversupply coal, cement, steel, lumber, or anything else, without similar disaster. A movement is now being started by the American Bankers association to study this question. It deserves the hearty support and cooperation of every banker,' banking syndicate, Investment trust, broker, and other financial institution In the country. We boast of our conscious control of Industry. Through trade associations keeping members in touch with the condition of supply and demand for practically all basic commodities, we have fostered organized business research on an extensive scale. All this work, however, will go for nothing as far as lessening business depression Is concerned, unless similar organization and research Is made in the financial field. The time is past when each Individual clique of Investment bankers can operate independently of the general group. Last summer they were each rushing to form a new investment Pm- over 71 years, Berry Brothers have maintained a reputation for quality, Today, Liquid Granite is as good as yesterday or years and years ago. Here is floor varnish that wears and wears. Made in both gloss and dull. A Liquid Granite Floor is easy to keep clean. It is sanitary. All you need is a damp cloth aod prestot—it is clean. Call on us for anything you may need in the line of Finishes and Painting Supplies. S. ML Griffith Co. i 905 Green Ave. FAPKB AND FAINTS earl to b* associated tttls should be no .battle? to grouping lh« honest, capable, ftM progressive institutions into a national, association. They should draw Up a Strict Code of ethics and practices, tt they do not do so they face government regulation of a stringent nature, and, What is worse,- a growing animosity on the part of the public to the whole Investment trust idea. It is time for the tijusts to clean house, to weed out the Black sheep, ,ahd to force the adoption of. an iron-clad ethical code administered by a national organization. Policies must be itr accord with the public • interest and the general economic and financial welfare. th* Igflttffltta Irt 6 A H«lfona1 ft*, theft wt that association join forces with the Investment Bankers association, the Americas. Bankers association, ahd the New York Stock exchange to establish a permanent research bureau to constantly study money conditions, the condition of supply and demand for securities, the need or lack of need for further capital expansion of particular industries, the relation of national income to se- cdrity offerings, and similar vital questions. This should act as an advisory board to prevent, insofar as possible, such catastrophes as occurred in the financial markets last summer. Industry is organized, but Uert White, above, wu» under doctors' care after leaping 25,000 feet from a plane at Lancaster, Calif., In an effort to excel the world's record parnchutff jump of 24,412 feet. Dazed by the fall, he was not located until an hour after landing. It was his 100th jump. He carried food, water, a gun, knife and extra parachute. The new record was not to become official until his barograph was checked. & » t» t3> »' 8* I* H» » » t» »• y* •» ,» » For The June Bridel FREE WeMmg Ring O/fer With every d i a m o'n d ring bought this month we are giving a lovely Wedding Ring Free. We are showing a wide selection of Blue White VVes- selton Diamonds in Green, and White Gold and platinum mountings. $25-00 $37 .50 .00 trust and issue securities before someone else. Holding companies, many of them grossly inflated, appeared thick and fast. There was a mad scramble for the Investor's dollar with no guiding- organization to show the promoters the folly of their ways, and point out to them that they would not Dnly hurt themselves and their investors, but they would also bring about a financial cataclysm, the effects of which we have witnessed on business during the past six months. The time has come when the investment trusts of the better sort should get together and form a national organization for research and uidance. The investment trusts suffered a great loss in public esteem as | j a result of last fall's happenings. | j Nevertheless, the trusts are here, and they will remain. The basic idea is sound even though the practical conduct of a number of them has been unwise. Moreover, the trusts are a vital factor to be reckoned with in finance. They hold $3,000,000,000 of the investment funds of this country. There are more than. 600 of them. There are good ones and bad ones. The problem which they all face Is the proper regulation of their activities In relation to general financial and business conditions and public welfare. There may be among them j certain ones of so unsavory a char-1 .00 One of the newest designed Wedding Rings given FREE Give her f Silver- I* I ware £9* *& We have a Jgt marvelous se- || £9j lection of the ».j. famous 1847 *& Rogers Bros., j^ Wm. Rogers & j:9ji S o n,s, C o m- ^ muntty, I i f e- time guarantee and Community par-plate. The prices are very moderate. « CASH or CREDIT HERMAN'S 1311 Eleventh Ave. Est. Since 1900 |&&&sfe&&&&&sfe&S&sfe&&sfe&sfe&&&!&sfe!te W ftat! W* «*** toft***!, fo* e*ampl«, no* to cbntfot oil pwdtift* tiott and conserve our oil fesmifees. We have research bureaus helping to guide the conduct of merchandizing. 3ur manufacturers are In constant touch with data on production, stocks, shipments, and markets in their industries. The time has come when our financial Madert ffltrtl df«*afcl 4fty idea* of selflsh isolation 4*8 co*j»*f- ate with one another for tfia gen«r*l good. Business by the Babaonchart now registers 8 per cent below normal compared with 11 per cent above normal at this time last year. Copyright, 1930, Publishers Financial Bureau HAPPIER SUNDAY SUPPERS WITH BLENDED OLD HOME Gently squeeze an Old Home loaf. You feel blended freshness. It keeps for days. No other bread can bring you the delicious lasting freshness of Old Home, for only Old Home is blended. For a delightful Sunday supper buy this blended bread tomorrow. Remember the important name OLD HOME. Your nearest grocer has this blended bread for you every day. THE OLD HOME BAKERS. HALLER'S HOME BREAJ 4-P1CCE BED ROOM SUITE $• New in design, striking In appearance, superior in construction and very low in price. Beautifully veneered in matched walnut Special Low Prices On All Living Room Dining Room, Bedroom and Kitchen Furniture United Furniture Co. Nationally Advertised Furniture 1105-1107 Sixteenth Street ! Just Off Eleventh Avenuej Cash or Friendliest Terms T HEY'RE BROWING AWAY HEIR BOOKS BUT THEY STILL NEED SHOES Black and Elk, Tan and Elk Sport Oxfords with Gristle Sizes 1 to 6 *3.95 Black Calf Oxford with leather sole and half steel heel. Size* i to «L width $3.95 Jti - to ±J 1402 Eleventh Ave. Altoona, Pa. TLHoona's Finest Store Your Furs Now . . . Phone 7155! SRBT Shop Brett's Tomorrow . . . and You, JPitt Be Pleased! 12IO Your Fashion Shopping Center...Presents...Tomorrow The Brett Store's Biggest Dress Event.... Fifth Annual ; DR655 5AC6 T HE Dress Sensation of the year, because it brings to women, misses and juniors, right at the beginning of the Summer season—Dresses for practically every Summertime need—at very, very Special Prices. It is an Annual Event in which we extend every' effort and search every resource for the purpose of obtaining the best the market affords—in "Fashion-Rightness"—in Quality—in Value. See them in our windows! See the hundreds of others inside our store! You'll be pleased and want to select your Summer's Supply! ———— In Brett's Downstairs Store—You Will Find """"~~""" A Style and Price Event That Will Please You, Offering Many Recent Arrivals in Brand New SILK DRESSES at 7 .00 8 .95 9 .75 At this amazingly low price you'll find—Sports Dresses (both active and spectator), business dresses, dresses for afternoon, dinner and semi-formal wear—dresses for town and country wear—for vacations and for traveling. Whatever you desire—it's most likely here—in Printed Crepes and Geor- gettes, Pastel Silks, Silk Piques, Marilyn and Yo-San Crepes, and plain Crepe de Chines. Jacket types and Sheer Ensembles also included. A Brett's Store Super-value—at only $7.00 to $9.95. All Sizes From 13 to 50^ Are Included In All Three Groups On Brett's Main Floor—You Will Find A Remarkably Unusual Fashion Offer . . . Hundreds of Ultra-Smart, New SUMMERIZED FROCKS $11.00 $1^.75 SOO.95 at 11 16 29 A fine selection of the most recent SuccJsaes in Silk Dresses—reproductions of much higher priced models. For Women and Misses—in regular and half-sizes. Georgettes, Soapsud Prints, Printed Crepes, Polka Dots. Navy Georgette Dresses and Ensembles. The Youthful Jacket Dress. The Cocktail-Jacket Dress. Sleeveless Dresses. Long-sleeved Dresses. For afternoon, in formal evening, sports, business and vacation wear. High quality—on sale at $11.00 to $29.95. Practically Our Entire Main Floor Given Over To This Event! "•*»» And Lastly - - - A Money Saving Reminder of the Annual APPAREL CLEARANCE-Reductions 'Average 25/ 0 to 50$ Entire Dress Coat Stock 23% to B0% Off! Entire Sport Coat Stock 25% to 50^ Off! AH Fur Neckpieces 207- Off! All Cloth Suits and Ensembles Half Price! To $35.00 Early Season Dresses Now $18 Highest Type Early Season Dresses....Half Price I Groups of $10 to $15 Millinery Half Price! All Children's Coats Now Half Prise!
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