Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-18


money,
In America poor people have lost
shamefulIy through being alIured into
giIded traps by INSCRIPTIONS promo
ters and brokers" Swindling has
cost the unwary upward of 5000. 3D.,
600 in one year. 1t has been checked
to some extent. The dissemination
of correct information by newspapers
and magazines has helped. The post
al authorities have queered a good
many clever games. In some States
laws have been passed to severely
punish stock swindIers and their kind.
The issuance of high grade securi-
ties in small denominations has con-
tributed inus!uably to driving out
fake stuff. There Is to-day no need
for even the smallest investor turn
ing to worthless stocks and bonds, for
he or she can buy the best in as low
as $40 quantities. This development
is of far-reaehina Importance.
=
Discussing the investment opPortu-
mites now within reach in the current
issue of Hsarst's Magazine, ! point
outs
"You can now buy $40 bonds.
"New York City has taken the lead
in bringing the highest grade of Sc
eurity within reach of the most mod
est purse. The results that will flow
from this innovation can not be fully
srasped. It should, and probably will,
mean that Americans, like the French,
will become a nation of thrifty inVes-
tors. In France the peasants can buy
safe bonds of very small denomina-
ton, but in Iordiy, opulent, big-seale
America nothing less than $1,000
bends used to be issued, so indifferent
10 small investors were our railroads,
our industrial corporations and our
other large borrowers.
$50 keen, however, has become the
struggle for capital all over the world
that even the -prouSest applicants for
funds--goVernmentS, States, munich
patities, railroad systems and trusts
arc snxioua to cater TO those who
have saved; not thousands, but hun-
dreds or even tens of dollars. Of late
500 bonds have come into vogue.
"And now Ne. York City is making
a speciality Of $40 bonds. Their yield
is about Ala per cent.
"Now, 4t-2 per cent is more than
savings banks pay, and the risk is
absolutely negligible. While those
whose nesteeg is very tiny can not do
better than place il in a strong, care
fully managed savings bank, the ad-
visibility of buying a good bond
should be seriously considered by
those who have accumulated several
hundred dollars or more. On $1,000
the difference between 3 1-2 per cent
and 412 per cent is $40 every year
Not much, do you say7
1.-THE difference in twenty years, at
compound interest, would Law the
foundation for nice savings account
for your son or daughter. One thou
sand dollars at 41-2 per cent COM
pound interest become $1,000 in less
than sixteen years, whereas money
at 31-2 per cent takes more than
twenty years to double itself. And
remember that thrift begets thrift
Just as nothing succeeds like sue
cess nothing stimulates saving like
saving. You can not begin day too
soon. The Government one day may
initiate European nations by adopting
old age pensions, but what seIf-re-
spectins, healthy person would COM
pare the satisfaction to be derived
from his own savings with the feeling
that would accompany a dole from the
national purse7
"The buyer of one bond wants to
obtain another as soon as he possibly
can. Two 500 bonds paying 1-2 per
cent bring 50 year. Five paying s
per cent-as many sound bonds do
net S25 each year, and, of course, this
S25 interest helps to get another bond.
1.-THE investor buys for income.
1.-THE Spectator buys for fiuctua-
tons in quotations.
1.-THE investor seeks to avoid risk.
1.-THE Spectator takes a chance
1.-THE investor in a safe bond is not
hurt by temporary declines in the
market price; his income is sure as
long as the bond runs, and he can get
full face value for il when II natures.
1.-THE SPECTATORS profits are not
limited. He buys for possibilities and
changes.
Investment should be practieed by
all persons of ordinary means.
Speculation should be left to those
who can afford to incur risks and to
lose money, to those who have special
opportunities for gathering and an
alyzing basic information, to those
whose regular duties do not call for