The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-01-04
GktGntelEfqetter.
INVESTMENT OF HONEY IN
STOCKS AND BONDS.

-
Advice for People Who Have Nor
Money than They Know What u
DO With.T
From the N. X. Financial Chronicle.
Purchases Of investment securities AR
usually small In the month Of December
and the. ,closeness 'Of the money marke
has this year furnished an additional
cause for q limited business. On the pthel
hand, as The 1st Of January approaches
when the heaviest disbursements Of thu
year are made in payment OF dividends
and interest, inquiries are very numerous
in regard to the best securities for invest
meht by parties who are about to receive
funds which they wish 70 place In the
most profitable stocks or bonds consist
ent with safety. T
Government bonds have recently I'D
vanced further in prices, and considering
the decline In gold, the inducement fol
private investors TO take these bonds fol
tho annual interest," Is less than ever be
fore The Six Per Gents of 1881, TIN
Currency Skies, and the Ten. Forties, flv(
per cents, are the only standard OF the
market, as the Five.Twcnties will all bt
redGemable soon and may be converted
into FIVE per cents. The bonds above
named at present prices, and gold at 1851
pay about five per cent. ....t
Southern State, bonds have been very
much unsettled OF late by the unfortunate
condition Of financial affairs In several O.
the States, and particularly by tho actor
OF the Legislature Of Virginia in stopping
the funding Of the debt Of that State and
refusing ID pay the January interest
Prices Of many Of these bonds are Ger.
tainly low enough 10 invite purchases
but tho uncertainties are so great in re-
gard to the payment Of interest and prin
Cipal, that they arc now essentially specu'
latiye bonds, and as such, we have moth
ing 10 say Of them in this column. OF thu
NOrthern States some Of the best six pei
cent bonds can be bought at par.
City bonds are also worth about par FOL
six per cents, wherever the security Is
considered first class, but recent develop.
ments in New York, and the rapid III
crease oil debt in some other cities, have
tended to make this class OF seCuritie.
less popular than formerly,
Railroad bonds are unquestionably the
most popular investment Of the presen
day with all those purchasers who wist
TO place their money where they can OBJ
compelled to change the form Of their In
vestnenis for some years, A very ,largl
amount of the funds coming On the,niar
ket fr6El tho payment OF Government
bonds, and corporation dividends and in
terest, willundonbtedly beinvested in rail
road bonds, and when these are inyestet
iudiCiously, under the advice Of reliable
brokers, the security and profitableness o.
the Investment can hardly be excelled
In regard to security, we should classify
railroad bonds as follows:
First 0ldss. Bonds secured by mort
gage on property which would sell u
auction, under any contingency, for more
than the face OF the bonds.
Second Cia$s.-Bonds. secured by mort
gage on property not so certainly wortt
more than the bonds, but having the alb
solute guaranty or endorsement Of another
substantial company.
Third Cass.-MOrtgage bonds similal
to the last named, but having INSTEAD o
an absolute guaranty or cndorsemcnt) the
security furnished by'a permanent lease
traffic guarantee, or operating Contrac
with responsible company, on terml
which make sure an annual income sutll
cient TO pay interest regularly and retire
the principal as 1t natures.
htt,rtL Inoa, Dn,,lnr oT
companies unsecured by mortgage.
NEW LOANS OFFERED.
A number ofnow loans now invite thC
attention of investors, many Of them, w
doubt not, being very good purchases.
Before buying new bonds investors
should examine as TO the several features
Of such bonds, and the actual basis upor
which they rest, and in making such eX
animation would do well to satisfy them
selves upon the following points:
l. What proportion Of the whole cos
OF road is raised by bonds, and what pro
portion from actual stock subscriptions o.
other resourcesI "a fair proportion O
the cost of every road should be furnished
from other means than the sale Of bonds.
9. What amount Of bonds is issued OF
each mile of road and is this amount ex
Cessive, considering the nature of th,
country trayersrd, and the probable trafllt
Of -the road? -
g. How soon will the road becomple,
ted, what amount Of gross earnings pei
mile, may be expected when it "a com
pletcd and allowing 90 to IS per cent fol
operating expenses, will the net earhingt
be sufficient to pay interest on the bonds
A. II bonds arc based in whole or ii
part upon land grant, inquiry should be
made Us 10 the title TO such grant, very
particular information obtained as 10 thu
character OF the lands, and q fair estimate
made Of the price which can probably bt
realized per acre, and the length OF tint
which will be required 10 sell the lands.
8. Who are the officers and directors o.
the company offering bonds Are they
well known financial men, whose names
give character to the enterprise, and who
will feel bound to protect the bonds after
they are issued -
g. If 1t is desired to sell tic bond.
again within lew months after purchas.
ing, what price can be obtained tor
thGmy