Daily capital journal. (Salem, Oregon) 1903-1919, 1914-07-24

Just how to invest money with abb
solute security and for a definite in
come cannot be told in few words.
1t must be learned from experience
preferably some one else's experience.
Usually one s safest guide in invest
ment matters is his banker. His ex-
perience in investing safely the bank s
funds, his knowledge of tne pitfalls
and his observance of money Successes
and failures, qualify him to NPe as
vice.
If one is to get anywhere as an in
vestOr he must make beginning-take
the first step-and in doing so, he
should consider these cardinal points:
First; Security of principal. 1t is
utterly, futile to invest money without
having this point passed upon com
petently. One should 60 no further un.
til he is sure he is right on this point
Second: Certainty of interest return.
Thousands of investors are misled by
vain promises, with distressing results,
Third: Availability of invested
funds in case of an emergency. Too
many find, all too late, that they are
in possession of securities for which
there is no market, which no bank will
accept as collateral, and which the pro.
moter who sold them refuses or is un-
able to redeem.
A point which is often placed first
but really belongs last is the interest
rate. As the interest rate rises, secur-
ity, interest return and availability us
ually- reeede, often to the vanishing
point.
Do not take chances with your money.
An unusually nigh return for short
time will not compensate you for the
loss of your principal.
Experience gained at the cost of re-
dueed capital is too dearly bought.
Mining stock investments are typ
zeal of many preearious schemes that
small investors are invited to get into
'on the ground floor
You remember Mark Twain s defini-
tion of mine" A hole in the ground
into which lot of fools throw their
money.
There are many wildcat schemes pro-
NOTED for the sole purpose of separating
fools and their money, but the lure Of
getting rick quick seems to be especial
ly strong in the case of mining stock.
If your subscription to any such in
vestment' is solicited, you will have
difficulty in refraining from putting
your money into tne proposition if You
bear in mind these facts:
The stock of mine known to be
good does not need TO be peddled
around.
1t is hard to turn into money the
stock of any other kind of mine.
Every ton of ore removed from q
mine reduces its value Just so much. II
the mine is exhausted before your prin'
| cipal has been returned to you in divi-
dends, you are loser.
A safe rule to follow in choosing an
investment is to go to your banker and
inquire. what proportion of its face val
ue he would loan upon it as security
Being stern critics of collateral, the
officers or loan committee of your bank
can give you pretty good idea of the
degree of safety, convertibihty and
availability the proposed investment
possesses.
A savings bank account itself offers
an ideal investment. II has the ear
dinal features of security of principal
certainty of interest return and avail
ability in an emergency.
1t has an additional feature which !:
often denied tae investor in securities
namely, the possibility of contributing
small, odd amounts, and Immediately
reinvesting interest returns by adding
them automatically to the principal.
T. d. MaeGregor.