Judith Gap journal. [volume] (Judith Gap, Mont.) 1908-19??, 1913-08-01

and he also knew OF Others VINO ha0
cramped themselves to the borrowing
point by such Investments. AL the
money paid for such stock went out
of the community and at least half of
it was completely lost. None OF 1t
was earning u rate of interest AS high
~ could be obtained locally.
A little investigation showed that
Mr.. Shell was conservative in his
statements. 1t seems rather All ex-
ceptiOn than otherwise to find man
who has not been victimized ut one
time or other by purchase of secur-
tiles of a foreign corporation. The
investigation was not All exhaus-
tive one but it disclosed six men who
lost every cent they had invested and
not one of them even knew of for
eign stock sold in Fergus county
that could he depended OH to pay 8
per cent. There may be such stock
but it must be very scarce.
1t can be set down as Il basic fact
that stock of outside corporations
brought to Fergus county by glib
tOngued statesmen. is open to suspi-
ciOn. Such salesman work OH COM
mission and they can always make
higher commission by selling otf-col-
Ored securities. The very fact that
the stock is not sold in its
home is basis for suspicion that
home investors are too wise to buy it.
A thoroughly good security does not
need the services of Il salesman Oper-
ating on commission as high as fifty
per cent. Good securities are readily
tloated through bond houses and
banks.
III spite of all this, hundreds of
millions of dollars are thrown away
by investment in wildcat enterprises
And other hundreds of millions are
invested III foreign stocks paying av-
erege dividends Of less than four per
cent when the same money invested
in home enterprises or in ones own
business would earn much more. 1t
is simply another illustration Of Bill
ly MasOn's story about buying free
coal in Canada, burning the coal and
having nothing but the ashes left,
while the same money spent with a
neighbor coal dealer. will remain in
the community and you can ''get an.
other hack at it,"
Two estimates were made of the
amount OF money invested annually
in Fergus county in outside securities
but both estimates seem too large. 1t
is sufficient to say that it is larger
than the regular amount of money in
circulation here and that amount is
probably larger per capita in Fergus
county than in any other county in
the United States. only All abun.
dant prosperity could stand such a
drain on its resources. 1t it were in
vested in livestock it would add All
average amount of more than $1,000
to the income OF every voter in the
county.
Such purchases appeal to the gam
bling side Of humanity and are made
largely because of the glowing and
lying statements of the oily stranger
whose living depends on his abili, y
to sell. He can say what he pleases
regarding the prospects of the cOrpOr.
alton and there is no ready way OF
proving whether lie is telling the
truth or not.
At the very best and also the least
often such Investments net the pur-
chaser less than he could make OH Il
home investment. At the worst, and
this happens Oftener than not. thu
money is lost in All outside institu.
ton and the investor "never gets an.
other hack" at it.
Let's get together on this PROPOSE
ton. How would it be to:
|. Never invest IL cent in any Sc
curities of an outside institution if il
is possible to invest the money local
".
2. Never invest cent in any Sc
curity without the advice OF YOU
banker.
3. Never buy thing unless absol
utely necessary if the net profits ar
taken out of the county.
Don't these rules Of procedure lool
good? Ask any banker Or successful
business man. Better still, ask til
investor in outside securities All,
who lost. The ripe field for til
} stock salesman lies among the mel
) who have comparatively small sum
J lying idle. They want their none
to be working and are willing to tax
Il chance. In large part Fergus couI
: ty corporations are owned locally an
} the stock is in strong hands. But a
: new institutions start the local tiel