American Falls press. [volume] (American Falls, Idaho) 1907-1937, 1917-04-12

IDS country anu III must u th'ii
many times. The thing that i'm
presses me regarding Americans is
the rapidly with which conditions
nearly everywhere are changing. They
change in ones own section. In ones
own city, IN ones own n%eighborhood.
upon ones own street, almost. it
would seem overnight. Hence, It
g. a safe rule not to invest in any
thing that one has not recently ex-
amined either In person or by trusted
and familiar business advisers or by
both.
Should BE Inspected.
The corporation that is inspected
by IN. national or the state government
IS a safer one In which to invest than
one that runs free from such inspec-
ton. | have often advised young men
OF means to choose as their first in
vestment, even though the return be
very low. the shares OF some national
or state bank. This brings n into
favorable associations in business.
Such shares are hard to- buy for the
good reason that they are so valuable.
Their very scarcity attests their worth.
II has frequently been said hat the
lower the interest rate offered, the
better the security. This was true,
perhaps years ago, but the habitual
frauds who make livings by selling
worthless shares have learned that
they will get more suckers by offer
seven per rent than by offering twelve,
and by offering twelve than by offer
ing nifty per cent, a year. Recently,
they have become so shrewd as to ask
a premium upon their stock so as to
create an impression that 1t Is ex-
ceedingly valuable.
Nevertheless, one may properly pre-
sumo that any offering to the public
al % return exceeding six per cent is
al best speculative and possibly frau
dulont. while any offering above seven
per ceut should be assumed to be
fraudulent. with the burden of proof
to the contrary upon the concern max
ing the offer.
But do American business enter
prises never make fabulous profits?
Yes. they do. sometimes. The temp
tation to give some pages out of my
own experience, which has been al
most entirely in real estate and in
a single line OF production, is too
strong to be resisted, and | give a
single instructive instance. l bought
years ago In a corporation in this
familiar line thirty-four shares at
Zone hundred and fifty dollars a share
, received on the average twenty-slS
: per cent dividends on par for clever
years, sold out at two hundred anC
I twenty-five, and for three years the
a concern went on paying above twenty
per cent. But recently the business
has been running at a loss, and the
! present investors are in deep water
2 often il pays to get out even while
+ the tide Is still running in.
' Wise Investor knows When TO Sell
n Tho wise investor knows when {,
sell ont and to 80 into something else
Many a man has grown poor by hold
i, ing ON too long. It is also true tina
a many a man has failed of great wealtI
i. because he sold out too Don
Investing is as serious a concer.
n ass earning and saving. Until this i
. perfectly understood, the man VIII.
. earns and saves will remain the cas-
mark Of the man who makes It hi
# means OF support to market WORTHLESS
a or speculative stocks and even bonds
n one needs to avoid carefully the pro
fessional fraud and just as CAREFUL
II the self deceived Spectator who hope
and believes and is perfectly ure tina
IS the enterprise he is promoting wi
make everyone in II a fortune. Thi
sometimes does indeed happen, bu
A. to rely upon its happening is like try
ing to support a family by playing tn
a cards for money.
"A The man who earns two hundre
dollars a month and in the course {
s-two or three years saves a thousan
~ dollars to invest should think OF III
o. money as being the economic equivi
re lent OF all those years, and procee
With the seriousness that BELTS ii
ne situation. The men who prOcee
es lerwise are called lambs becau.
M ov are childish.
IN he man who means TO make a 70
lo nue out OF his savings should new
10 into the concerns of other me
s. h.i should master some n line hin
no Sc, SO thoroughly that he can so In
TX business in that line alone or Wi
on others not as an investor but as a ma
no ager. This takes time. Il takes sci
an control. IL takes high Intelligence.
"a takes steadfast courage. 1t takes
A. fortunate conjunction OF circul
81 stances. All other men should inve
cir With the first purpose to keep secu
nd their capital fund irrespective of t
annual return.
.oa RICH MUST PAY THEIR WAY,