Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1897-05-22
WARNING OF EXPERIENCE.
wildcat Speculation surc to Result
Disastr0usly.

Wildcat Speculation sure to Result
Disastr0usly.
There can be no doubt, snys the In.
diana State Journal, that thousands Of
people In this ana adjacent States arc
taking their small Accommodations Of
money out Of building assoc ociatiOns and
banks and turning It over to firms That
promise to pay, and do pay, for time
ut least, 10 or 20 per cent. per annum.
1t seems incredible TINT sensible nnd
thoughtful men and women should he
so unwisc, even II the offers now being
made to pay an annual return Of one.
NTH of the Investment were the first Of
that character. DO they consider that
there Ii no legitimate business mt the
present time In which those who are
engaged can afford to pay per cent.
Interest on large amounts of money to
carry 1t along? Are they aware that
the net earnings on the capital stock
and surplus fund Of all the national
banks In the United States during the
year which ended Oct. 81. 1896. was hut
"a per cent, including the profits on
circulation, and that the actual divl.
dends Oh the capital and surplus fund
OF such banks has not exceeded @ per
cent. since 1890, and was but 8 pc.
cent. the last banking year? II these
Institutions, which have the use Of u
large part Of their deposits without
paying interest, can earn but "a per
cent. Il year Is It possible that any
firm or association can SO invest money
as to return to the investors 20 per
cent! British cOnsOls, bearing 21a anu
!M per cent. interest, are quoted at 112.
and United States / per cent. bonds Of
1923 were quoted In New York at 124
on Friday. Indiana could sell Its 4 per
cent. bonds considerably above par.
Loans can be obtained on sound real
estate In most Of the States of the Cen.
tral West for from to per cent. Dur
Ing the last week money has been loan.
cd on call at from ~ to per cent. ana
ut much lower figure In the money
centers of Europe.
In view OF such facts. how can any
person who possesses ordinary sense
bring himself to imagine that any firm
or association can SO invest money as
to make 20 per cent. year? Does he
dismiss common sense, Judgment and
reason and permit his Imagination to
trick him into the belief that the man
who offers 20 per cent. per annum pos
scsses some secret for mOney-making
or which the wisest capitalists of the
world, who take 3 or per cent. are
ignorant? Have the men who mas
querade under ordinary firm names
found the philosophers stone for which
the ancient disciples Of alchemy sought
In vain and can turn base metals into
gold? II so, why do they trihe with
the bOundless wealth In their grasp and
dole 1t out In 20 per cent. dividends on
loans?
In reply to such questions as the fore
going, those who are urging people to
invest their money so as to obtain 20
per cent. annual interest loudly urge
that some OF the firms which make
these offers have been paying 20 per
cent. In loans for three or four years.
With tone of complete triumph these
persons who have made money out of
such operations ask, "What have you
to say to that" The question may be
answered by a few facts. Five or six
years ago there sprang up, under the |
cover OF loose beneft-insurance laws
In the Eastern States, mutual benefit |
by the score, which prom
sed miraculous returns on money loan
I'd them. The scheme was adroitly pre-
sented, showing the profits to those
who subscribed. Never were so many
names applied to organizations indica-