The Logan Republican. [volume] (Logan, Utah) 1902-1924, 1917-06-12

Invest For Profit" was published
the following article, entitled, why
Shares Are Offered" This article
is about the best answer to the ques-
ton often raised by the average un-
informed man: IF your proposition
Is 80 good, why do you come to me
with It? There are plenty of rich
men who would take it all, IL It is
as good as you say"
Why Shares Are Offered.
Persons who have not mad the OPP
portunity to learn the fundamental
principles that underly the employ
ment Of capital often wonder why
shares in corporation are offered
them.
Particularly do they wonder why
all such shares are not taken by large
capitalists. instead of being offered
to so-called small investors.
By Analysing the following facts,
the answer will be made quite APP
parent:
In round numbers, our wealth Is
now about $3.50, 900, 900, 100000.
Our money amounts to about s4.-
600. 900 100000.
Our population is about 100 .OOO.-
900.
We have. therefore, about $4,000
Of wealth to each person.
We have about $4,000 in money
to each person.
| Has the answer been suggested?
1t must be clear that we have very
little money in comparison with our
wealth.
Also that we create wealth faster
than we create money.
And that money is more liquid
circulates more freely than other
wealth.
The tendency of the possession Of
money is ephemeral; of other prop
erty, continual.
Most persons have approximately
their share of money, but few have
their share of other property.
Therefore. some people have more
than their share of other property.
but a proportionate share of money.
The larger capitalists are the ones
who have more than their share OF
other property, but not a proportion
ate share of money.
The millionaire does not carry q
million dollars around with him;
neither does he have it where he
can lay his hands on it.
! He has 1t invested in other prop
erty, in companies, where 1t is work
ing and earning more money for him,
which he in turn puts to work in a
similar way to earn more money for
him
Did he not do so, very small
handful OF men would have al the
money, and the rest of US only frag'
ments of property.
The big capitalists are not, there
fore, always in a position to invest
heavily in an enterprise, no matter
how good it may be.
Were the capitalists able to invest
in new industries, as popular opinion
has it, there would be few sharehold'
ers in companies, and these few
would he the capitalists.
The capitalists are shareholders in
practically all companies. but they
are seldom heavy shareholders. They
have their investments scattered In
many companies.
Uusally when rich man dies and
an inventory Of his wealth is printed
it contains a long list of companies
Of all kinds in which he was share
holder-a few shares here, few
hundred there, and few thousand
elsewhere. These shares had been
acquired from time to time as he had
liquid wealth with which to acquire
them. There was no time, perhaps
at which he could have bought all
; the shares, or majority of them In
any company, no matter how much
he may have desired to do so.
When a new enterprise is formed
to conduct an enterprise, 1t needs
money. Whatever else 1t needs to
conduct its business, 1t must have
money.
A part of its shares may be given
in exchange for property to be used
in its business, but 1t must have
money, and to get this 1t offers Its
shares to the public.
We have seen that the bulk OF our
Il 81 q m a