Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-18
SMALL INVESTOR
CAN BUYF|RM
BONDS NOW
B. C. Forbes Points Out Advan-
tage Paper in Denomination
of $40 Gives to All.
BY 3. c. FORBES.

BY 3. C. FORBES.
The small investor of to-day, il
wisely guided, will be larger invss-
for tomorrow, since Money makes
money,
In America poor people have lost
shamefuIly through being aIlured into
uiIded traps by INSCRIPTIONS promo
tiers and brokers" Swindling has
cost the unwary upward of S200,C-J,-
900 in one year. It has been checked
20 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 swindlers and their kind.
The issuance of high grade securi-
ties in small denominations has con-
tributed inva!uabIy 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-reachina importance.
Discussing the investment opportu-
mites now within reach in the current
issue of Hearst's Magazine, | point
out:
"You can now buy $40 bonds.
"New York City has taken the lead
in bringing the highest grade of Sc
curity within reach of the most mod
from this innovation can not be fully
grasped. 1t should, and probably will,
mean that Americans, like the French,
will become nation of thrifty inves-
tors. In France the peasants can buy
safe bonds of very small denomina-
ton, but in Iordly, opuIent, big scale
America nothing less than $1,000
bonds used to be issued, so Indifferent
TO 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 proudest applicants for
funds-governments, States, munici-
palities, railroad systems and trusts
are anxious 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 New York City is making
a speciality of $40 bonds. Their yield
Is about 4 1-2 per cent.
"Now, 4 Up per cent is more than
savings banks pay, and the risk is
absolutely negligible. While those
whose rnesteeg is very tiny can not do
better than place it 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 12 per cent
and 41-2 per cent is $40 every year
Not much, do you say?
1.-THE difference in twenty years, at
compound interest, would Law the
foundation for a nice savings account
for your son or daughter. One thou
sand dollars at 4 1-2 per cent COM
pound interest become $1,000 in less
than sixteen years, whereas money
at VIZ 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-
specting, healthy person would COM
pare the satisfaction to be derived
from his own savings with the feeling
that would accompany dole from the
national purse?
1.-THE buyer of one bond wants to
obtain another as soon as he possibly
can. Two $1o0 bonds paying 3 1,2 per
cent bring So year. Five paying 5
per cent-as many sound bonds do
net $25 each year, and, of course, this
$25 interest helps to get another bond.
1.-THE investor buys for income.
1.-THE Spectator buys for fluctua-
tions in quotations.
THE investor seeks to avoid risk.
"The speculator takes chance.
"The investor in 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 it when it natures.
1.-THE spectators profits are not
limited. He buys for possibilities and
changes.
Investment should be practiced by
all persons of ordinary means.