The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1906-01-14
Where Shall l Put SAVINGS?
Problem for All YOUNG Men.
BY john A. Rowland.

~ y
c. HEN young man on a salary has
VA rounded out his first. $500 savings
wv he ID moro likely than ut any other
time In his life to turn sharply to
the idea Of investing It. He will
have heard and read OF fortunes based on far
smaller sums. Advertisements, small and
large. In the daily papers will BIO reminders
Mt all times that he has embryo fortune
within his grasp. Millionaire stock jobbcrs
will be searching him out through the ex-
plotting OF financial ventures. The grocery
clerk who may be tired OF working for an
employer may be seeking him through the
Partner Wanted column OF the small ads.
What ought I to do with my money!"
In this manner becomes an insistent query
OF the young man in Just the proportion that
no has imagination and the business instinct.
To this question, too, this young man can
get moro dvcrging answers and experience
more conflicting advice. perhaps. than to any
other query which he might p,it to dlstlnct-
ly interested world. And some >: the reasons
for these Views arise honestly out OF the an
ylronment OF the possessor OF the $780,
What Is a Good Investment
One OF the first questions to Nbe asked OF
this young man Is. what do you consider
a good investment for your money!
Strictly speaking, an investment. as II IL
considered by the business world, takes into
consideration tho earning capacity Of the
property or the financial investment, the Sc
curity OF the investment. the prospect OF In
crease in tho value Of tho investment, and,
lastly, The consideration of accumulated and
undivided profits In the business
In all OF these things the investor mas al
most unlimited scope for the exercise OF his
individual Judgment. It Is an individual
matter at the last. One man. for instance,
may attach 30 much Importance to the Sc
curity OF his money that finally no goes into
the market and purchases $500 government
bond drawing only per cent interest.
In another Individual. where the specula-
tive tendency Is strong and the temperament
OF the Individual Is optimistic. the mere
chances for the Investments growth In value
may be the investors motive He risks his
Judgment Of the future against the element
OF security. against present earning capaci-
ties OF other opportunities, and. regardless
OF tho undivided pronts OF the business.
which may be paying a small present profit
In favor OF some future dividends.
Naturally the strongest incentive to the
young man who has money to invest Is this
chance OF his investments doubling or quad
rupling In value, while at the same time. IL
is paying him a fair rate OF interest. This
Is the promoters strongest card In interest,"
ing any man to invest money. Five hundred
dollars which in the first 1--WE years will pay
interest on the principal and at the end ofthe
period show u valuation OF 81 900 in sales
transaction has the smack OF a fairy story
in business which occasionally comes true.
How to Figure Investment.
How does 1t do so? In answering the ques-
ton there must be the first proposition that
1t truly Is good business venture; other-
wise 1t Is the promoters fairy story that
doesn't come true by one to thousand
miles. Coming true. however. there Is the
first demonstration that the investment OF
the $500 was good business venture. The
need OF the bank. or factory. or mercantile
house, or railroad. or whatever 1t Is has
been demonstrated; its management 80 far
has been tested and found good: perhaps new
and unexpected fields OF operation have
opened: some portion OF each years profits
may be set aside to an account OF I'M
divided profits or surplus; altogether, the
chance for further enhancement OF invest
ment values Is still bright.
The aggregate OF oil these things appeal
Ing to the speculative spirit IN addition to
the facts already appearing In figures makes
this first $500 investment worth $1,000 to
the young man who took the risks In the
beginning. In their material bearing thesa
Influences may show In details First that
the investment is paying It's net per cent
a year on $1,000; that the proportionate un-
divided profits may add $3.50 to this sum;
that the chance of increase In the invest
ment's life and opportunity is worth $500
at the least. and finally that In the sense
Of its security the investment Is worth
another Sl50-a total of $1,000 as the mar
ket value of the young mans first $500
It must be admitted however, that this
is an unusually pretty fairy story that comes
true. Ono Of the greatest reasons for this
Is that long before the average young man
with his first $500 has a chance even to read
the story and ponder 1t some older man who
has thousands to his pennies has read the
and bought up the copyrights.
AS an example Of this. and yet as showing
how poorly the old bookworm in the business
fairy story volumes reads and Judges, there
Is the failure of O certain national bank In
Chicago a short time ago. IN this bank.
which had $1,OOO0OO capital and 100000
Of surplus. an original $500 investment had