The independent., 1907-04-25

SioWli VI VALUES III the country ana
the rapid increase in wealth, that the
man with the small savings account
feels like using 1t to secure for him.
self a greater participation i'm the pre-
vailing prosperity than that afforded
by three per cent interest. That there
is now widely prevalent among our
people of moderate means a mania for
the investment of small sums In haz-
ardous and fraudulent enterprises Is
unquestioned. The purpose Of this
article is to warn prospective small
investors against the "get-rich- quick"
plans with which they are beset.
] believe that in the vast majority
or cases moderate sums of money cam
not be invested safely so as to bring
In more than reasonable interest re-
turn and should not be invested in
response to specious newspaper adver-
yertisements. The small investor gen.
orally overloOks the advantages which
the capitalist has as compared with
himself
In the first place, the capitalist, in
making an investment, is generally In
the position Of being desirious Of buy
ing from Others The small investor
Is in position where others are de-
sirous Of selling to him. The capital
ist buys where he can buy cheap,
whether the seller is making profit
or not
The small investor in answering a
published invitation to buy is always
paying profit to the seller. One
should remember when he is reading
newspaper advertisement of stocks
that he is being asked by stranger
to buy something at the strangers
price.
There is no reason why the stranger
should offer him an exceptional bar
gain. Exceptional bargains in these
days or prosperity do not. as a rule,
go begging. The capitalist, If he buys
at profit to others, generally knows
what that profit is and measures it in
its relation to the profit which he
hopes to realize on ine purchase. The
small investor generally knows what
the profit of the seller is. Where the
seller fixes his own profit. 1t is almost
always larger, other things being
equal, than the amount of profit which
results from negotiation. In the ma
jority of proffers of mining stock
through newspapers. the man who
buys is paying a profit fixed by the
seller for his own benefit. Large cap
ital makes preliminary investigation
or either acts upon no investigation
or upon an investigation paid for by
the seller. Large capital negotiates
for price with the true value in mind
The small investor generally buys
without knowledge of the true value
What chance has the small investor?
You know nothing from the advertise
ment as to whether the promoters are
men of past business. success. Many
men who are known business failures
in their own communities are often
long distance millionaires. Often they
are broken plungers whose brief sue
cess was widely chronicled. but whose
gradual business relapse has naturally
not been heralded.
Do not put too much faith in what
names seem to mean. Find out by
inquiry from some one who knows,
just what they do mean. II you have
no way of finding out the character
and past business record of the men
do not invest.
A banker in one of our great city
banks once asked man to invest some
of his personal funds in his own busi-
ness. The latter had a business witch,
though very successful, was not one
of great magnitude. He had never had
my obshi1oo itidttoit7 Will tfit tnhfti
or his bank Naturally surprised, the
business man asSed the banker why
he selected him and his business. In
view Of his close relations TO the great
business leaders of the city, The bank
er replied;
Because you are successful. and IL
Is your business. l am almost daily
asked by business mens TO join them
In outside ventures, but they won't
take my money In their own business.
When / join coterle of men In an
outside investment, ~ an almost tn
variable rule we all lose: and yet every
one OF us may be a success In our
own business, | have had go many ex-
perienees OF this sort that II even Mar
shall Field should have asked me To
join him In "a manufacturing business
or mining venture. | should have de- |
clined. But II he had said Tut some
Of money into my business would |
have given him all had Now men. |
when they are far along In business.