New-York tribune., 1912-01-07
CHANGE IN BOND SALES|
Small Investor Can Now Get
More Manhattan Securities.
PROPERTIES HIGH CLASS
Plan Used to Popularize This
Form of Investment Bearing
Satisfactory Results.
by w. L. q. Gaillard.

Investment in income producing Manhat-
tan real estate was not generally open In
the last ten years to small capital because
Of the prohibitive prices OF properties. This
left open to IL investment only in non-
productive properties. consisting of sub
urban real estate. While a fair return was
had from many OF these investments, others
returned less than bank interest.
UQfulflled predictions OF enormous in
creases in value of suburban real estate
haze made small investors wary, and thou
sands have turned to the form of cO-opera-
tive investment offered by companies that
deal only in high class developed properties
and which assure the buyer of the safety
of his principal and a greater than bank
interest for the use of his money in en-
larging the scope of their work.
This is perhaps the best form of invest
ment that has been devised. and l predict
that within the next ten years It will have
as strong a hold on the American investor
as it has on the investors of foreign coun'
tries, where it has been in operation for
more than a century.
. 1t is pleasant to note that the American
investor in real estate mortgage bonds Is
absorbing like his French brother, an i'm
mcnse amount of ordinary, everyday
finance. lie desires TO know not only the
kind Of bond, what secures it, its rate how
long 1t may run, but the complicated de-
tails as to accruing interest, etc.
Like the Frenchman, he is taking little
for GRANTED, but studies with great care
and keen insight the investment offered,
and buys only after a most searching in
vestigauon.
The French people own, in the form of
individual investments. over S per cent OF
their national debt, which is in the neigh
borhood of S6,OOO,O 100000. The percentage of
United States government bonds held by
individual American investors is so small
as 10 be almost negligible.
The French peasantry through their
saving habits have accumulated an I'M
mense capital, but its power is less appar-
ert i'm its bulk than in the intelligence with
which II is placed at interest. II IS esu-
mated by Neymarck, the French stausu-
clan. that the people of France hold Sc
cllr'ties approximating $lsOOO,C0O,CO and that
The nation receives more than &61W0OOO
annual income from her foreign invest
ments.
Although comparative population Is more
than two TO one in our favor, comparative
figures for 1910 show 12,937i6 depositors in
French savings banks, against Si'5'49'
American depositors. The average French
deposit was SIG in 1910, as against the a'-
erage American deposit of Sal %.
still more striking is this average Wheh
one remembers that French savings banks
limit deposits to 800 francs, less thah
500. forcing depositors into the general
field Of investment when their savings eN-
Ceed that sum.
It is not surprising, considering what we
know Of Continental investors that their
gross holdings ot American securities
amount 70 $1,000. 100000 and that it is esti-
mated one-third Of this vast amount IS IN
real estate. Perhaps the greatest holder OF
real estate securities is Great Britain, fol-
lowed by Germany, Holland, France ana
Switzerland Including all sorts Of Amer
dean securities. Great Britain holds over
4ONn N,Oo0. Germany close to AGHD'WV'
Holland over $6oo,coo,OOO France $35NOOo,Ooo
and Switzerland over 500 100000.