Devils Lake inter-ocean. (Devils Lake, Ramsey Co., Dakota [N.D.]) 1884-1905, 1904-06-24

fcreclose or makea private settlement, ].
no matter what is done it lis an indi-
vidual act, and done wholly for the
protection Of one individual .the
holder ST the loan. .ss3
This perha APPS Is the most important
reason why 1 believe in farm loans;
out of course one has to take. into con
liberation the investment return when
his funds are invested for thu income
To this end give the table printed
on this passage AS an example Of the.
various income returns as shown by
average experiences with several
classes Of Investment s stocks, bonds,
notes, and farm loans
In this table it will be seen that
hallway stocks and industrial bonds
liank next to western farm loans in
point Of income ..eturn. In criticism
| OF the former it is only necessary to.
recall the wide fluctuations these se-S
|cu1ities have had during the past
fourteen months snd their sensitive:
ness to manipulation and speculation
in general. The tire mendous decreas-5
ed earnings that railways are now
suffering are not a bull card on such.
stocks for Investment purposes. I
have had my experience with stocks;
NOW on | shall leave them rig hteously
alone. 52.s5
Neither bonds. notes or stocks Of
lin iustrials are safe, investments unless
lone knows the individuals managing
lsueh corporation and the condition s
upon which the earning capacity de-
ponds. There are many cotton mills
here in New England that have paid
s to 10 per cent dividends for years !;
lsuch investments are pretty safe
But with these securities the personal
Iequation enters into the situation too
much. s.35
First mortaage railway bonds are
legal for nearly all savings banks IN
New York and New England states,
and of course are selling on too high
basis for the average private In
weston to buy. The second mort 8 age
bonds are measurably attractive, ut
Of course are speculative, and the in,
Ivestment return does not justify the
lpeculative risk taken BY the buyer.
Municipals, eastern and the larger
western cities are for savings banks
land trust funds. They are not in
tended by bond dealers to be sold TO
private investors There are eltain
municipal and county bonds, however,
that are just as attractive as vest m
farra loans they are like the proven
bal 8 hens teeth, hard to find.
Railway and indust1 ial notes have
been the mainstay Of the bond mar
ket for several moths. Inv estoIs
land institutions that usullv buy rail-
lway stocks and bonds have been buy
ling the notes, which yield them a
livery much higher rate of income.
A These issues have not hurt; the mar.
i ket for western farm leans one iota.
IL Certain loan agents will take excep-
/ tions to my listsof western farm loans.
lA Boston dealer il such mortgages
tsays that it is impossible to find Iowa
i loans that would pay better than p !
Icent. havesa connection with an
4 Iowa agent who can find me gilt-edge
loans that pay from {. 20 to 5.75 pei
lcent, and these upon the yeiy safest
Ireal estate, occupied at productive
farms. Minnesota loans carry inter,
Lest at from 5 to 6 per cent. II consid
B or the better smortg age can be secured
n paying around 5. 10 per cent. There
4 are many Nebraska loans paying 6 pei
/ cent, so I consider 5.75 per cent |
livery fair average. There are more 6
4 per cent loans in the Dakotas thar
4 those bearing a less rate Of interest.
q AVERAGE INCOME RETURNS.
Aver age investment returns from
groups Of securities, Eve lines being
Il included il each list:
Railway vestments.
q Leading Stocks. !. 8. ]. SO p. e
4 First Mortgage Bond IS. a. p. e
Second Mortgage Bonds /. 4. 08 p. 4.
Industrial Investments.
q Leading Stocks. 4. 90 p. &.
q First Mortgage Bonds. SO p. c.
Municipal Securities.
Eastern Bonds. ]. Z. 81. !. 40 p.9 {,
1 Western Bonds. is p. e,
Notes 0f Corporations.
i Railway & \. ]: 4. 40 p. G.
Industrial. 80 p. {.
Farm Loan Investments.