ate a new
factor had intruded itself into the situation. Certain corporate
obligations were about to come due and the refunding of these
obligations, whether in fresh issues of bonds or in short term notes,
was going to make it necessary to withdraw the prohibition against
placing investment securities upon the market. When this necessity
became clear it was decided that some strict supervision and
safeguarding of the sale of bonds and notes was necessary and the
so-called "Committee of Seven," appointed by the bond dealers, were
requested to formulate a plan for this purpose. This Committee of
Seven consisted of members of the firms of: Brown Brothers & Co.;
Guaranty Trust Co.; Harris, Forbes & Co.; Kissel, Kinnicutt & Co.; Wm.
A. Read & Co.; Remick, Hodges & Co., and White, Weld & Co.

On September 9th, this Committee issued the following notice to bond
dealers:

"Your Committee is pleased to report that New York City's
financial needs have been taken care of satisfactorily, thereby
considerably clearing the foreign exchange situation which
existed when our communication of September 3d was sent out.

"The Committee is therefore of the opinion that the placing of
securities owned by dealers with their private customers should
be approved where the securities can be sold without disturbing
the collateral loan situation and your Committee will be glad to
continue to advise whenever such opportunities arise. Anything
tending toward public quotations or the creating of the
impression of an active or even semi-active market would
unquestionably seriously disturb the loan situation.

"Transactions with bargain hunters should not be countenanced and
your Committee will not approve the closing of transactions
coming under this head. Prices should conform to the spirit which
has prevailed during the past few weeks.

"Recognizing the support which banks and other lenders of money
have given to dealers in securities, it should be the policy of
such dealers when securities are sold to apply the proceeds
toward the liquidation of loans.

"The Committee has considered questions of maturing obligations
of cities and corporations and believes that the present
situation does not warrant any attempt to issue long time bonds,
but that such refunding should be accomplished through short time
financing.