The Birmingham age-herald., 1909-05-30
BONDS, BONDS AND BONDS

properly returns to the possession of the issuing road
 20. Refunding bonds are those foated to provide money wherewith to meet loans coming due In many cases re- funders are resorted to where the bonds outstanding carry a high rate of interest. substituting the refunding bond at lower rate.
 2l. Extended bonds are those securities which have become due and whose pay- ments have been extended to some future time by mutual consent
 22 Collateral trust bond is not secured by mortgage on property, but by stocks and bonds deposited in trust. In the event or failure to pay interest on bonds, the collateral may be sold to satisfy the bondholder
 23. Debenture bond is an unsecured note of the company issuing it. It is not se- cured by either mortgage of property or deposit of security of any kind, relying for payment on surplus earnings
 "A. Income bonds arc usually secured by mortgage, but the issuing company need not pay interest unless it is earned. These bonds are often made cumulative. the interest accommodating against the bond to be paid before the dividend on the stocks.
 20. United States government bonds are issued against the faith and credit of the federal government.
 26. Foreign government bond is issued in similar manner as United States bonds, except in some cases there is the addi- tional securiety of a lien or revenue on some sort of government monopoly.
 27. Municipal bonds are issued by cities. villages or towns and are promise under the seal of the law to pay interest and principal at maturity of the loan. The security is tax levied against property, the credit and the stability of the issuing point. A municipal bond, issued by a city of the first, second or third class. is one of the safest investments that can be purchased.
 2S. School district bonds are issued .by certain described districts in communi- ties for the building of schools The tax levy furnishes interest and principal for final redemption. As in municipal bonds the amount of issue is limited by law to a certain percentage of the assessed val uation.
 
 27. Railroad bonds is a general term ap- piled to bonds issued by railroad corpora tions; the mortgage covering the line of the road.
 2S. Industrial bonds are issued by cor porations covering a mercantile business or public service plant. Generally speaking an industrial bond Is any other not issued by municipality or railroad.
 29. Traction bond is one issued by an interurban system (street railways) and is protected by the property of the com pany
 Thus 1t will be seen why the invest ment public feared to accept some of the large space reputable advertisements that are continually appearing in the news papers of today. It Is to be regretted that sharks still prey upon the unwary by holding out stock carrying anywhere from to 10 per cent interest. If the prospective investor will communicate with his local banker prior to the pur- chase of worthless paper, many thou sands of dollars may be spared. The banker is always ready and pleased to educate the great public as to investment opportunities, and if the public will state it's ease to this experienced banker, no difficulty will be found in securing an investment that will earn interest and dividends for the holder of the paper.