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

The small investor of to-day, if
wisely guided, will be a larger inVes-
.or tomorrow, since Money makes
money.
In America poor people have lost
shamefully through being alIured into
silded traps by inscriptions promo
tiers and brokers" SwindIing has
cost the unwary upward Of $780, ~,
900 in one year. II 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 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-reaching Importance.
Discussing the investment opportu-
miles now within reach in the current
issue of Hearst's Magazine, ! point
outi
"You can now buy $40 bonds.
, "New York City has taken the lead
in bringing the highest grade Of Sc
eurlty within reach of the most mod
est purse. The results that will flow
from this innovation can not be fully
grasped. II 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 Iordiy, opuIent, big-scaie
! America nothing less than $1,000
bonds used to be issued, so Indifferent
10 small investors were our railroads,
cur industrial corporations and our
other large borrowers.
80 keen, however, has become the
struggle for capital all over the world
that even the ptoudest applicants for
.funds~ governments, States, munich
paIities, railroad systems and trusts
arc 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.
A"And now New York City is making
a speeialty4of $40 bonds. Their yield
is abOutfast:2 per cent.
sNoWs4 12 per cent is more than
savings banks pay, and the risk is
absolutely negligible. While those
iWhOse .nsstegg 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 31-2 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 312 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 a 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 SO year. Five paying 5
per oent-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 fluetua-
tions in quotations.
"The investor seeks to avoid risk.
1.-THE Spectator takes a chance