New-York tribune., 1911-01-02
THE INVESTMENT PROBLEM
Backward Swing in Money and Bust
ness Will Be Followed by In
dnstrial Revival

The operation OF investing In these days
is attended with much deliberation and
hesitation. These are the words of j. ).
Bache q Co. in their annual letter just
received which is in part as follows:
For nearly year we have been in the
backward swing with ups and downs not
only IN prices of securities but also IN
volume OF business and in profits of bust
ness The possession OF funds ana prop
erty in such periods means much anxiety
for the holder To see the market value
Of his principal shrink from to % per
cent Is serious business, especially Tor
the average American investor, VINO is,
after all, largely a speculator and becomes
restless II the securities he has bought DO
not advance at a swinging pace; and II,
on the contrary, they decline, he becomes
Respondent and discouraged-and often sells
out at a loss. In older countries the IN
yestor Is more Of an immOvable PROPOSE
ton. lie buys carefully, first for safety
and then for income. It never occurs 70
him TO sell a security once thus bought. he
watches its fluctuations up or down IN
differently or rather disregdrdS them altO-
70 ther and goes about his business.
In addition TO the large sums coming on
I'm the shape of dividends and interest. we
have vast number OF millions added 10
the oWnings of the agricultural class from
the years crop; but as far as known not
a large proportion of this wealth goes into
securities, at least not listed securities.
The farmer puts MS new llOicS lHNO lli'l 2
land. or, If he is getting on and has ac-
cumulated much. he loans against land 10
his ncighbor. Some day our farmers will
learn the advantage OF sound investment In
securities which are as good as gold or as
frSt-class real estate mortgages, ana
which always have a quick market When
the tide Of agricultural investment. which
has already started. begins 10 flow steadily
towards listed securities in great volume,
II will sweep the market bare of them.
Hesitation OF investors IS due TO the
present situation. brought about by the
happenlngs OF 1910. The year opened with
glowing Drospects and il was generally eX-
rected that Il would be one OF the most
prosperous In our history. At its bright
dawning a joyful crowd. the workers OF
America. sat on the hills watching the
breaking light of new prosperity. But
mingled In the crowd of watchers, unper-
Ceived bv most a few skeletons sat grimly
on guard.
Natural laws commenced 10 work and
rave already begun TO clear away two or
.bree Of the adverse features. Prices OF
commodities have declined, the foreign
trade balance IS swinging strongly 10 the
credit side. and receding business has re-
ducnl stocks Of material gradually and
will release a volume OF capital.
Much Of any future tronble then, mas
already been discounted. The business OF
The country has been steadily settling
down 10 a point from which natural law.
hacked hv ineXhaustlble resources. must
AGAIN revive H. The better securities Will
urdoubtedIv continue their present attrac-
tive dividends. and from the real invest
mont point of view. buying outright and
ruttinP securities away 10 hol0. there need
bc no hesitation as TO action.