South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-01-17
BY E. KENNETH TODD

given the question much study.
When asked the question. How would you advise
young man or with a capital OF 500 a
year invest his her money!" Mr.. Thorward
answered, In bonds
He then gave number of reasons why it would
be advisable to invest money in city county
state or public utility bonds. The interest he de-
clared was good and quoted the figures basis
of 20 years heretofore stated. These investments
draw six per cent interest Six per cent interest
doubles the capital every II years.
Mr. Thorward favors bond investments in pref
erence TO 2O-year endowment insurance policies He
stated that straight life insurance policy could be
kept up, and the bonds be purchased with the same
amount Of money that would be invested in the en-
dowment policy. At the end of 20 years he said
that the investor would have his insurance for life
in addition to the amount of money he might have
secured through the endowment policy
START TO SAVE WHILE YOUNG.
There is reason why young man should not
save a certain part of his salary each week. If he
it while young he will do so as he grows
older. Let him start when he is 20 years old and
by consistent and reliable investment which is pos
sble through the bonds issued by railroads cities
and counties. and public utilities this man be
independent when he has reached the prime of life
This is how the saving and investment question
summed up by Mr.. Thorward He told of the
system in some European countries where it is com
pulsory buy government and utility bonds. Prac
tically every person, matter how small his wage
may be. owns at least one bond, according &c
statistics
Newsboys, peddlers washerwomen and others who
receive only fraction of the money that many OF
own bonds in France These newsboys and others
expressly that they may secure the bonds anC
their ambition is to own many possible. In
stead of increasing the size of their bank rolls
these frugal Frenchmen and women increase the
number of coupons they may clip.
These bonds issued in denominations going a.
low $40. Mr.. Thorward believes that system
such this promotes thriftiness the part Of th
people, interest in the government and public i'm
provements, for which of the bonds are used
IF were advising my own on the question
of investment 1 would tell him to take building anC
loan stock" was the answer given by L. c. Whit
comb, of the real estate firm of Whitcomb anC
Keller. This may seem unusual coming from
real estate man. but to be perfectly frank beev
of the two the building and loan is the better in
vestment general rule.
My for saying that the building an,
loan is good proposition that it makes bette
citizens more thrifty and saving people and give
satisfaction. have been interested in the building
and loan business for several years and never 70 m
knowledge investor been disappointed"
Mr.. Whitcomb explained that his confidence il
building and loan stock compared to real estat
lies in the fact that there is less possibility o
fuctuatiOn in the stock. A might start buyin
property on the installment plan and after lengt
of time find that he needed the money he has pu
into the real estate or be forced to stop payment
1t might be necessary for him to sell at sacrifice
But in building and loan stock the investor is al
ways at liberty to draw out the money which ha
been deposited there, said Mr.. Whtcomb.
DOES NOT ADVOCATE BONDS
He does not favor strongly the purchase of bond
but believes that they average investment
much to strengthen the nation in every way, accord
ing to Mr.. WhitcOmb.
speaking local conditions he stated that Their
were several good building and loan associations
South Bend and that the cultivation Of the habit
saving by the people here would a NOR
prosperous community.
Much Of real estate brings in interest at six pc
cent and more according to Mr.. Keller, but ther
many possibilities this may not happen. Figure
for the past 40 years the valuation of bushes
property and other residence real estate which hav
been kept by the Whitcomb and Keller concern shO
that these valuations have doubled every 20 year
Thus he says, that many real estate investment
are more profitable than others.
Mr.. Whitcomb believes strongly in the theory tha
every man or should cultivate the habit
saving even if the stipulated amount each period
but small. Saving is not the simple method Of paC
ing so many dollars away each week to lie idle, bl
placing this money where it will operate to tn
best advantage of the investor.
Il fully believe that building and loan stock
the best investment for men women living
salary" was the statement made by Frank Boon
secretary of the South Bend Building and Loan a.
ISOLATION. Il do not say this because happen to
in the line of business but because after Ion
and close investigation 1 have come to the cor
clusion that it is the best for many reasons"
PAYS SIX TO TEN PER CENT.
Mr.. Boone then explained that building and loa
associations are mutual organizations in which ever
investor is stakeholder. The investor max
monthly deposits at low rates and receive from s
to 10 per cent dividends annually. The propositio
he asserted was safe for the that all loar
by the associations were general rule mad
only upon real estate secured by first mortgage
alone.
Building and loan concerns under the juri
dictiOn of the state board of examiners just al
the banks. and Mr.. Boone believes that these a
sOcations even more safe than the ordinal
bank. He explained this by stating that the banl
Will loan upon name security and upon mfr
basis. thus making the concern liable TO loss mo-
easily than a building and loan association.
IF there should be continued panic I belize
that the banks rule would break against Il
wall in much quicker time than the associations
asserted Mr.. Boone. Security is usually taken
the association on property which is usually 40 p
cent more than the mortgage calls for. Thus Il
associations protect themselves against the pOssb
fuctuation real estate prices"
: Mr. Boone also is satisfied that investment
$ building and 1 is better than bond investmen
for the that cash is always available if Il