The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-02-15
THE LAW OF SAVING:
ABOUT CLUB PLANS
Continued from First Page.)
banker. Everybody is glad to see him.
Smaller Bonds.

banker. Everybody is glad to see him.
Smaller Bonds.
Tho American Telephone Company,
one OF the greatest corporations in the
world last year made a bond issue
which included bonds of 500 denomi-
nation. and no less than seventeen
railroad corporations. twenty- six gas,
water. electric light and power and
street railway companies and fourteen
great manufacturing or industrial"
concerns have outstanding 500 bonds.
The United States Government too.
has issued some of the Panama Canal
bonds In 500 size. bonds OF the city
of New York small as $40 can be
purchased, and only the other day the
State of New York sold $4,000 900
bonds. portion OF which Issue IS In
800 pieces
This action OF tho State OF New
York has not received anything like
tho publicity II deserves. for II makes
available to the small investor for
the nrst time "gflt-edged municipal"
g bond of the highest grade and yield
ing good return such rs hiterto saw
ings banks and insurance companies
have literally fought for. The most
! liberal savings banks pay only 4 per
cent. IN this new New York State bond
the man with 500 can make an invest
ment such as the savings bank itself
HaAOS Siiu bSl ITO pcT Soiik Oh hio
money.
The State of Louisiana and the
Province of Alberta. Canada, also have
lately issued 500 bonds.
Among the railroads which Issue 500
bonds are such high grade companies
as the Central Vermont. the Southern
Pacific, the Norfolk and Western.
Among industriaIs. the General Eleo-
trio. the Liggett 6 Myers Tobacco
Company. the P. Lorillard Tobacco
Company. the Bethlehem Steel Com
pany and the American Typefounders'
Company have put out 500 bonds. and
In the public utility" field some of
by 500 bonds.
The Best Authorities.
The best writer's on investment prin-
ciples have been emphasizing the wis
, dom OF "diversiica ton" Of investments.
that is. the placing Of ones capital In
each of a number Of fields. SO that an
| accident to any one industry or any
one section of the country will not
! sweep away tho investors whole for
tune. but Will impair only a small par,
Of It This "diversincation" formerly
possible only to tho man of large
means Is now equally feasible for the
I little investor. The man with $500
to invest can put 800 In a railroad
| bond. 800 in q public utility. 800 In
a manufacturing Industry and 500 In
| n government State or city bond and
only a national cataclysm can wipe
him out. If he has another 500 and
wants to put II into real estate mort
gage he can find responsible companies
which take mortgages on big city
| buildings and divide them up into 500
! pieces.
1t Is now possible for even the man
! who thinks no will never have 500
at one time to become a bondhoider.
| without resorting to the part pay
ment" plan which some brokers have
| been advertising.
The Club Plan.
Last fall four young men in q New
| Jersey town devised a plan for buying
! bonds. which has developed into a ma
| tional movement. They organized a
little savings club of their own. pledg-
| ing each member to put 81 q week into
| the treasury until $50 should be COL
looted. when they would buy $50
bond. and when four bonds should
| take one.
Hearing of this little savings club.
| the editors OF Moody's Magazine con-
| ceived tho Idea OF Improving on It and
| making It available to the public gen.
orally. AS $50 bonds are scarce. 1t was
decided to make the minimum 800.
| and the number OF members OF q club
ten. Under the Moody plan each OF the
!, ten members of, a saving club pledges
| himself to put into the clubs treasury
$40 a month. and every month the
treasurer buys 500 bond, selected by
some member. with the approval Of the
others. and at the end Of tho ten months
| there is 800 bond for each member.
| The interest accruing on the bonds pur-
| chased during the ten months Is kept In
| tho treasury: until the bonds are dis
i tributed, and then divided equally
/ among the ten members.
i Within week after this plan was
\ first outlined two clubs had been
j formed in Now York City, one in o