Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1908-02-06
MoRTGAGEs As INvEsAENs.
C. C. Wyandt's Interesting Article
In New York Financier.

investment Journal OF the country mas
an interesting article bye. 2. Wyandt
Of this city with which il prints his
picture. 1t is on Farm Mortgages
and Other Investments" and from It
we quote;
To-day's problem for those who from
the years income lay aside a portion
in savings Is how can this fund be
placed SO that 1t will be surrounded
by the three essential features, secure
ty, satisfactory interest rate, and cash
availability or convertability. Many
forms Of investment excel in some OF
these requisites but the prime invest
ment should excel in all three.
Broadly speaking, all such invest
ments may be divided into two gener-
al classes, speculative and non-specu-
latiye. Those forms Of investment
carrying with them a specific rate Of
interest, not subject to fiuctuation
either in principal or rate, come un-
der the detinition'of non-speculative;
while all other forms within the rate
of interest or income is uncertain, and
dependent on general conditions OF
business, and in which the principal
fluctuates in value, must be consderd
speculative.
The life insurance corporations op-
Grating in the United States now total
over one hundred "old line" compa-
MES. These afford another great OPP
portunity for the saving OF the people.
Their combined assets far outstrips
those of the savings banks. Though
subjected to rigorous public investi-
cations during the past two years.
their stability and sOlvency have not
been shaken. Probably no business
other than life insurance could have
withstood so successfully the damage
which resulted from this upheaval.
However, not single company waver-
ed in carrying out Its full promises.
The result Of the Investigations has
been of the most salutary character.
It has clarified the insurance atmos-
phere and given to the people a truer
conception Of the mission that life in
surance is to perform. 1t has rid the
companies Of INSCRIPTIONS officers
and stripped them Of dishopest Prac'
tees, SO that life insurance as an in
stitution to-day is planted upon more
substantial and vitil soil thau ever be-
fore in its history. 1t affords a safe
and sure means for the ir 5-vi1ent OF
savings. 1t serves as protection to the
family and investment to the assured.
It is, therefore, obvious that institu-
tions of this character must invest
their assets wisely or they could not
achieve results.
The average interest income OF all
the companies for twenty years is
4.93, but the Union Central, which has
made specially Of farm mortgages
has realized an average rate for twen-
ty years of $50. tits fair to conclude
that the most potent reason for this
lies in its use Of the farm mortgage.
As the funds OF life insurance COM
panies are larger than any other class
Of business, the comparison must be
convincing as to the superiority Of the
farm mortgage. The companies deal"
ing in these securities do not have to
ad Just their financial statement at the
end of each year to suit the values Of
that time, as is the case with dealers
in stocks and bonds. The farm loan
company has no depreciation to be
of, and does not need to
watch the Figures on the tape" to de-
termine the value Of the mortgages
listed in its assets.
The business of investing the mill
lions Of funds belonging to the life in
surance companies is very arduous
one, and especially so when applied to
investments. Applications
for these loans range in amount from
$500 to $4,000. Every application
receives scrupulous care; security
carefully examined; title passed upon
and all collateral features looked into
BY committee. 1t is more simple to
pass upon large bond issue which
aggregates from 100000 up than II is
70 deal with the small mortgage which
lakes the utmost labor and detail to
But the end accomplished
iustifies the means. i
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