Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-05-29
MAKING MONEY WORK.
Advice of Famous Rich Men as to the
Investment of Savings.
CLEVELAND SAYS REAL ESTATE.
Carnegie Quotes Statistics and Henry
Clews Likes Stocks.
J. PIERrONT MORGAN ON PATIENCE


make money than to keep it. 1t is not wha
a man makes, but what he saves and invest
to advantage, that causes him to become
rich. The most puzzling question that con
fronts a young man who has begun to saw
money and to get a little ahead in the worlt
is what to do with it. He does not want tt
follow the example OF the bad servant in the
parable, who went and digged in the earth
and hid his lords money" He does not
wish to hoard up his savings in bureau
drawer nor in an old stocking. On the con-
trary, he desires to invest his five talents,
or dollars, In something which will make
them breed five more in the shortest posi-
BILE space of time consistent with good
security.
Desiring to obtain the best possible ans
wer to the question, "What is the best
way to invest money!" young friend of
The DISPATCH recently addressed letter
of inquiry on this subject to several of the
most famous rich men of our time. In the
hope Of benefting other young men desirous
of investing their savings to the best ad-
vantage, he has kindly permitted the pub
location of some of the replies he has re-
ceived, as follows:
Henry CIews Says Stocks and Bonds.
Henry Clews the millionaire banker and
broker of Wall street,. naturally favors
investing money in personal property,
he having acquired his large fortune by
dealing in securities
"My answer to your question:, he writes,
"would be that there is no better invest
ment for money than gilt-edged stocks and
bonds Some of the wealthiest and shrewd-
est men the world has ever known have pre-
ferred this form of investment, and some of
the most colossal fortunes OF which we have
any knowledge consist almost wholly of
such securities. Notable cases in point are
the Vanderbits Rothschilds and Baron
Hirsch.
''Such an investment of money has several
advantages over investments in real estate.
First of all, securities are always readily
marketable. They can be turned into cash at
anytime. For real estate, on the contrary. it
is often difficult to find an immediate pur-
chaser, and if forced on the market to effect
a quick sale it must generally be sold at
less than its real value. Then
again, real estate is q constant care.
There are also taxes and water
rents to be paid and repairs to be made con-
stantly. Great trouble may be experienced
with tenants who are constantly defaulting
in their rent, and who finally move out be-
tween two days to parts unknown, leaving
the real estate owner to mourn mans in
humanity to man. Then real estate is SUBJ
ject to the risk of fire. True, that may be
guarded against by insurance, but insurance
is only another tax on the property and is
an additional care and trouble, as well as
expense, to the real estate owner. Bad
tenants NAV not only evade the payment of
rent but they may depreciate the value of
the property by detacing it or by putting it
to an improper use and giving it a bad repu-
tation.
'.The investor in gilt-edged securities has
none OF these annoyances to contend with.
In many of our States personal property
of this kind is not taxed at all, and where
it is, the tax is generally paid by the cor
porations issuing the securities Stocks
water rents. There is no difficulty in col
lecting the income from those that pay in
terest or dividends. They do not have to
be insured against fire. But when you buy
be sure that you get the best. Be sure,
also, that you buy at the right time. FL
nancial panics occur periodically and at
such times the very best securities feel the
effect of the general depression and decline
in price. Then is the time to purchase.
The Opinion Of j. Pierpont Morgan.
j. Pierpont Morgan, of Dre1el, Morgan
& Co., is one of the most widely known of
American bankers He learned the busi-
ness with the great millionaire philan-
thropist, the late George Peabody, whose
partner he ultimately became. OF late
years he has devoted his energies largely to
the reorganization. of crippled railroads,
and in that line of effort has proven him
self a financial physician of great skill, re-
storing to sound health many a thoroughly
disabled corporation. His views on the
subject of investment are appended.
"For the young man about to invest
what money he has been able to save, the
most important thing to remember is that
no matter in what he. invests he must have
patience to await the fullness of time and
the accomplishment of the purpose of his
investment, whatever that purpose may be.
If you buy a stock or bond at time of
financial depression. for low price, believ-
ing that it will soon greatly advance, do
not grow weary after few weeks or even
months of waiting, and sell out before the
anticipated rise has come. If you invest
in piece of real estate, feeling sure that it
is destined to grow more valuable, and
panics should come and cause it to decline
in price, do not become disgusted and think
to yourself, 'oh, we'll, I was foolish 1t
will never be worth any more than it is
now. Let it go.' On the contrary, have
patience to await the fullness of time and
accomplishment of your original purpose.
"Again, in investing money always bear
In mind that famous saying Of the Iron Duke
of Wellington, Good interest means bad
security Do not be tempted by the
promise of large interest to risk your savings
in hazardous ventures. Remember that
very low rate of interest with good security
for the principal is better than far higher
rate where the security is doubtful. 1t is
always better to make little sure money
then to take great risks on the chance of
making big money. Remember that all
things come to him who waits, and that
w ait and Win is good motto"
Grover Cleveland Likes Real Estate.
Hon. Grover Cleveland, who has once
been President of these United States, and
who may be again, is an advocate of invest
ing money in real estate, as might very
be expected Of one who by his