The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1914-10-09
RICHES BY MEANS
OF ENDLESS Chain
Combining Conservative Invest
ment With Speculation.
SAFE BONDS AS FOUNDATION
Preferred, Dividend Paying Common
and Speculative Stocks Accumulated
In Systematic Order-Banker Tells
How Anybody Able to Save Money
Can Start on the Road to Success.

Can Start on the Road to Success.
A New York man who had saved q |
little money and wanted to invest it |
sought advice from the manager Of |
his bank, says the New York Times. /
81 want to put this money where 1t
will be absolutely safe," he explained
II want something in the line of Sc
curities, something that won't require
any attention from me, something that
i won't have to worry about, that will
bring me in an income and that at
the same time will combine the Sc
curity of an investment with the ex-
element of a speculation"
''That is a rather large ORDER" CON-
mented the banker. You seem to
want to eat your bread and keep it
too. 1t can't be done. If you buy
stocks or bonds you've got to be either
an investor or a Spectator. There is
no safe middle ground where you can
be both investor and Spectator.
"Now. my friend, let me tell you a
true story. 1t may do you some good.
| It's about a man / know. now a solid
citizen of this nefghborhood, who TWEEN
| ty years ago was in very much the
same situation as you are at this min
ute. He had saved a little money and
/ wanted to invest it. He wanted both
| an investment and a speculation. but
| he concluded that they wouldn't mix
| any more than oil and water, so he
| decided to confine himself to invest
ment. Safety first-that was his idea,
and it was a mighty good one.
HE had about $1,000, and with that
he bought good, safe railroad bond
that brought him in per cent on the
amount invested. Next year he saved
another 81 900 and bought another
bond-not of the same issue. because
he didn't want to put all his eggs in
the same basket.
Every year since then he has saved
$1,000 and bought a bond.
THE income from his. bonds he has
invested each year in good, safe, divi-
dend paying preferred stock, some
thing that would bring him in an aver
age of between 6 and Z per cent on the
amount invested. For instance. the
first year of his career as a bOndholder
he received something like $50 in in
terest. He put that in the savings
bank, where in the course Of the next
year it earned him 81. The second
year he had, of course, two bonds. and
: the interest amounted to something
like S10o With that and little more
from his savings he bought his first
: share of preferred stock.
: HE has followed the same plan ever
since. AS soon as he gets the Interest
from his bonds into his hands he buys
= preferred stock-buys it outright.
+ "AlI these years, of course, oul
l. friend has been receiving an income
: from his preferred stock 1t frs
all be had was one share. and tina
I brought him in only about ST a year
- But gradually as he has increased hi
: holdings of preferred stock, his moons
5 from that source has grown, and nov
: it is considerable. All that his pre-
S ferred stock has brought him in be ha
: invested in dividend paying common
;. stock.
V His common stock brings him i
t, a little more than s per cent. Invest
d ing in common stock, of course, is NOR
+ or less of a speculation under almos
e any circumstances. but it wasn't enoug
/ of a speculation to satisfy the later
p gambling fever in this man-the feye
; that he had smothered all these year
i so when he began to get an incom
:, from common stock he cut loose. Ever
= cent his common stock has brought j
10 he has invested in purely speculatiy
- ventures.
To-day, as a result of his systema
ic saving and investment of $1,000
nj year for twenty years, this man b;
from his first class investments bono
1t, worth $4,000 or more, from his Sc
ond preferred stock worth easily 81:
- 500 and from his third common stot
that in any normal market he cou
sell for, say, $4,000. all together brin
ing him in a liberal and steady i
come. In addition, he has his pure
speculative investments, and they a
worth perhaps all told $4,000. TIL
our friend is worth nearly 100000
income bringing securities.
r. Even if his speculative purchas
had resulted in a total loss he wou
still have bonds and stocks bringil
him in comfortable return.
would have gratified his craving
speculation without anything approae
ing complete disaster.
. Now he's started a new cycle-a 81
ond series. He's canny. All the mon
he gets from his fourth line of invel
ments-mining stocks and SO forth
he puts into bonds. Otherwise.
nm hasn't changed his plan partic
of Bonds yield him preferred stock, til
as N turn dividend paying common stot
that in its turn speculative nondi
dend paying securities. and tho
when they begin to pay, more bon.
It's an endless chain. an unbeatal
system. Any body who can save mon
can make it produce, and it isn't n
essary to have 81 900 TO start."