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Circular No. 35
Series of 1918

D IR E C T O R S

OFFICERS
R . L . V A N Z A N D T , GOVERNOR
J . W . H O O P E S , D E P U TY GOVERNOR
L Y N N P . T A L L E Y , CASHIER
R . R . G I L B E R T , A S SIS TA N T CASHIER
P A U L G . T A Y L O R , A S SIS TA N T C A SHIER
R . B . C O L E M A N , A S S IS TA N T CASHIER
F R E D H A R R IS , A S SIS TA N T C A SHIER

EL PASO B R A N C H

FEDERAL RESERVE BANK
OF DALLAS

S A M R . L A W D E R , MANAGER
J . M . P R O C T E R , CASHIER
P A U L S. M I L L E R , A S SIS TA N T
FE D E R A L R ES ER V E A G E N T

W . F . R A M S E Y , C HAIRM AN AND
F E D E R A L R E S ER V E A G E N T
W . B . N E W S O M E , . D E P U TY CHAIRM AN
J. J. C U LB E R TS O N ,
. . PARIS, TE X A S
F R A N K K E L L , . W IC H IT A FALLS , TE X A S
B . A . M C K IN N E Y ,
. . D U R A N T, O K LA .
M A R IO N S A N S O M . . F T . W O R TH , TE X A S
JN O . T . S C O TT,
. .
H O U S TO N , TE X A S
E . K . S M IT H ,
. . . Sh r e v e p o r t , l a .
H. O. W O O TE N ,
. .
A B IL E N E , TE X A S
C H A R L E S C. H A L L . A S SIS TA N T
F E D E R A L R E S ER V E A G E N T
W . C . W E IS S ..................................... A U D ITO R
C H A S . C H U F F .......................... C O UN SEL

D a l l a s , T e x a s , June 15, 1918.

TO TH E MEMBER BANK AD D RESSED :
The indiscriminate offering of stock in new and untried companies, with offers to ac­
cept Liberty Bonds in payment thereof, and with glowing representations of immense and
immediate profits, constitute a great and growing menace to the general welfare. As
Mr. Austin, Bank Commissioner of Texas, well says, the public should remember that there is
no necessity for the promotion of any business requiring the payment of heavy promotion
commissions, and that almost invariably there is such a lack of raw material, skilled labor,
marketing facilities and experience as doom these enterprises to failure from the beginning.
Such new stock-selling schemes are the plainest disloyalty to the Government and the vic­
tims and dupes of these promoters are aiding the enemies of the Government. There is, and
will continue to be, every opportunity for the citizen to invest his savings in Government
securities, which are not only free from taxes, bear a fair rate of return, but aid to secure
and establish our liberty.
DO NOT LEND YOUR NAME in any way in aid of these companies, as some bank­
ers have unthinkingly done.
The Federal Government has made provision for companies desiring, and entitled, to
offer and sell stocks and other securities, to secure permission so to do through the Capital
Issues Committee. Any concern having a business proposition which is meritorious, and
which desires to do so, should be able to secure permission to offer its securities, from this
Committee.
ADVISE YOUR CUSTOMERS to require all concerns and salesmen offering stock
for sale to produce such written authority. Their failure or inability to produce this
authority should be a warning of “ hands off” to any and all persons.
Again, in cases which seem to be unworthy, call the attention of same to the local mem­
bers of the State Council of Defense. In extreme cases call on the United States District
Attorney, especially when the mails are used. In cases of doubt advise your customers to
consult Lion. Chas. O. Austin, Bank Commissioner of Texas, or myself. No honest busi­
ness will be hurt by investigation.
Yours very truly,

Federal Reserve Agent.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


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