Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1917-02-17
.sAvE MONEY NOW;
Invest after WAR
EXPERT ~ FINANCE WARNS
AGAINST INVESTING IN
WAR BRIDES"
cRAsA is INEVITABLE
SAYS PROFESSOR WHITNEY
University Of Iowa Educator Declares
Man With Foresight Can Take the
Profits After the European War
Man With Ready Money May Pick
Up Good Securities After Crash.

Iowa City, Feb. 17.-The wise man Of
today is leaving the war brides" alone.
sailing his surplus cash away in
good savings bank, and awaiting the
opportunity to reap sure return on
good securities, according to DR.. N. r.
Whitney, professor of economics, ex-
pert In finance at the University of
Iowa. That opportunity is surely COM
Ing, he believes, In the collapse Of
prices that will accompany the end of
the war.
MANY persons are accommodating
surplus these days but making such
unwise investments that they will And.
when the inevitable crash comes, that
their savings have been swept away"
DR.. Whitney declares in statement
for the Iowa newspapers intended as
warning to investors.
War Stocks Dangerous.
1.-The advertisements Of munitions,
automobile. oil, chemical and insur-
ance stocks are to be found in almost
every issue Of the daily newspapers
he says, land many thousands Of gull
lible investors will undoubtedly see
their savings disappear thru these
channels. tiss alsI,
within the next two or three years
there will be real opportunities to in
vest in seasoned railroad and Industrial
securities at prices which will enable
the shrewd investor to make very at
tractive profit. These opportunities
will come as result of an Industrial
tate ip al Ion h, arr.
monitory symptoms of which are al
ready apparent.
"F'rom July /, 1914, to Jan. l. 1917.
the stock of gold money in the United
States increased from s1,S72,00O, 900 to
$2.S50. 000, 900. or from $3.50 per capita
to $3.50. This increased stock of gold
is not actually in circulation. How
many have had any more gold in hand
during the last two years than before?
1t is accumulated in the vaults Of the
banks thruout the country where it
serves as the basis for credit
Credit Easy to Get.
Bankers have found by experience
that on the basis of 81 in gold in their
vaults they can extend credit TO the
amount Of 81 or S.. Consequently, the
amount Of credit extended thru the
banks has been enormously augmented,
with the result that interest rates have
been low and lenders have in some
cases sought to persuade borrowers 70
make use OF their credit facilities. This
ready availability of credit, coupled
with the high prices and attractive
profits for some businesses which have
also resulted from the increase in the
supply Of gold, has led to enlargement
Of many factories and the expansion of
for healthy growth.
Crashes Inevitable.
when the inevitable slowing up in
business comes and when the other
great industrial nations are again de-
voting their attention to peaceful pur-
suits these industries which have
grown up too rapidly will experience
great difficulties and many of them
will be forced to curtail their produc-
tion or to shut down entirely. This
will throw many men out Of employ
ment: some Of the manufacturers will
find 1t impossible to repay their ;oans
some banks. unable to collect their
loans, will fail and we shall be in the
midst OF a panic.
cat such time the prices of all Sc
curities, no matter how good. will go
down considerably. and those who are
prepared with money in the savings
banks will be In position to buy up
good securities at low prices. and then,
when conditions again return to nor
NAL, can sell out with a large profit as
the reward Of their foresight