The Washington herald., 1913-02-15

yestor. to a banking house in New York.
about the bonds of the --- conf
pany? I have owned two of these bonds
nearly fifteen years, and I don't believe
| have ever heard single item OF news
about the company. i dot know VINO is
running il. whether II pays any diVi-
dend. or anything else about It except
that my coupons are always cashed
when they-are due.
The banker when he answered this
letter had the pleasure of telling the
investor that his bonds were worth a
good premium over par and that the
company Is as solid as a rock
Every investor of a quiet type wants
Just the kind of experience that this IN
vestor has had in his bonds. He wants
to be able to stop thinking about his
investments and know perfectly well
that everything is all right Although
II may seem contrary to most Of the
things that appear in public print. the
fact is that probably 30 per cent Of all
the private investments owned by ord
nary people are really just about that
kind Of investment.
They have il tucked away in mort
gage bonds of the great railroads and
industrials of the country, underlying
lines OF big concerns, and direct first
mortgages on little concerns. They never
Street or depressions throughout the
country, or wars and rumors of wars
abroad. Nothing ever happens to bother
them. and they just go OH clipping their
coupons and spending their income
without the slightest idea of danger or
of risk: for there really is no danger II
the fundamental principles of the invest
ment are sound.
As a man gets old. or reaches that
rtTl 90 yx-ba la he hnNc L.
ward at things accomplished rather
than forward to things to be done, he
wants more and more to get his cap
ital stored safely away where nothing
can happen to it and where 1t will
be sure to yield certain fixed re-
turn. He does not want to worry about
anything: and he is not only willing. but
anxious to give up the chances for the
sort of business profit that he made
in his younger days. He comes to
realize that every time he takes a
chance to make a lot of money he also
takes a chance to lose: and while il
would be very nice TO make It. il would
be fatal to lose, because perhaps he has
passed the apex of his earning power
and any losses that he meets will be
felt to the end of life in the shape of
diminished income. To such a man. and
to almost all women who live on the
success in handling funds is to find a
place where nothing ever happens and
TO put their money away in such a place
with perfect confidence.
A few years ago the most conservative
bankers, when their customers wanted
this kind of service. had TO advise them
to buy bonds and mortgages that yielded
only from 81. to IA per cent, so that
man or woman who had $4,000 to
sSx-
annual income. Nowadays these same
banTers, just as conservative as ever,
and lust as careful of the interests of
! their customers. do not hesitate to advise
the purchase OF bonds and mortgages
that would yield $50 to $525 a year to
the investor. The difference OF 800
year is the measure OF two things: first.
the need of the investor on account of
the higher cost Of living: and second.
the decline in the prices Of bonds as a
direct result of this need; for after all,
in the final analysis, the prices OF all
standard Investments inevitably adjust
| themselves in the course Of years to the
needs of the investor.
One of these careful banking houses,
| IL the investor tells just what he wants.
will always be glad to go through the
lists at its command and pick out little
lists Of securities that would exactly
meet the demand. twill select not the
great standard issues listed on the ex-
| change, dealt in by banks and insurance
companies: but will be more likely to
| recommend some old seasoned quiet
| bonds that can be picked up in small
| lots by a skillful buyer at better prices,
in proportion to their safety and income.
than are afforded by the great listed
issues. for in these. of course. one must
pay a certain amount for the privilege
of marketability. which the quiet in
vestor really does not want.
IF. then. you happen to be one of those
fortunate people who have money to
invest for a fair income and safety. the
| fundamental thing is to find honest and
| capable service to pick out for YOU bonds
or other securities which will afford YOU
the safety and income that you want
, without at the same time making you
! pay for many other qualities. which.
| while valuable in themselves. are not
| things you particularly care about. Such
| service is provided by dozens. II not
| hundreds. of conservative investment
bankers scattered through all the inn
portant cities of the country. Without
IL. you may blunder into n false sense
! of security. With il. there is hardly
/ a chance In a hundred tina. you can &c
wrong. -
| 4 French automobile that Is driven by an aerial
4