The Bridgeport times and evening farmer., 1918-01-18
LIBERTY BOND LESSONS By HOWARD STEER Of Hincks Bros. 6 Co.
 LESSON NO. 29
 EACV MONEV
LESSON NO. %
EASY MONEY

Every time 1t rams SOHepOuy S0I9 wet feet or spells dress, put the crops are helped and the reservoirs are filled. Accidents and sickness are genuine. misfortunes, but what would the doctors do without them? IT the cars stop running you have to walk and are late to work, but you get some needed exercise and save some money. The water pipes freeze ana burst, but that helps to make living for the plumber. When you get real bargain in @ suit of clothes the tailor or the store either loses money or doesn't make so much as usual
 In other words, there are two sides to almost anything that takes place. We grow accustomed to seeing things from our own purely personal ana selfish point of view, forgetting the other side of the matter which is doubtless affecting some one else m exactly the opposite way.
 Have you been doing that with Llo- erty Bonds? Have you been looking at present prices and thinking re- gretfully of the loss that they mean to you? Have you even been think ing of selling your bond because you are afraid it will go lower?
 If so, suppose you turn right around and think for a moment of the bar gains these prices mean to the man who pays them and, remember also that he is buying because he thinks the bonds will go higher Perhaps you will reply that that isn't going to do you any good. NO. it isn't, but why shouldn't you be the other fellow? Why not take his men, tai attitude toward tfase prices and 1 do the same thing that he is doing? Try looking on the bright side for a while. Become a buyer instead of a seller. Think of these prices as an opportunity instead of a misfortune. And if you do let's see what is prob ably in store for you.
 We showed you last time how man must necessarily lose some money if he pays more than the face value for bond and holds it till it falls due. Now it's a poor rule that won't work | both ways. This one VII. If he should buy bond for less than it's face value and hold it till it is due | he is sure to make money. And the sooner it comes due the bigger is the percentage he makes, just as the man | who pays more than the face value loses a greater percentage the sooner i the bond comes due.
 Just see how it works out in the case of 4 per cent. Liberty Bonds. They are selling today at little over 96 which means close to $96 for | S1OO bond and $960 for a $1 900 piece. Suppose you buy a S1,0O0 bond, pay ing S965 for it. You get $40 a year from it no matter what price you pay, and $40 is 4.15 per cent. on your investment
 But do you remember how we ponted out to you a few days ago that Liberty Bonds were almost cer- tain to get back to par, or 100, by the time the next loan comes out? Suppose that next bond issue comes about three months from now. If our reasoning proves to be correct you will then be able to sell your bond for $1,O00, thus making a clear $35 over the cost price of $965 Now $35 is 363 per cent. of $965, and when you add it to the 4.15 per cent. that you are receiving by way of interest you find that you have had your | money invested at the rate of ITS per cent.
 But that isn't all. Interest rates are based on a whole years operations. You made that 3.62 in three months time which means that you really made a profit on your investment at the yearly rate of four times 3.69 per cent. or 14.52 per cent. And when you add this yearly profit rate to the 4.15 regular interest rate that you get from the bond you find that during those three months you have had your money invested at an annual rate of 1867 per cent.
 It is rather amazing isn't it? It sounds like a gold brick or a wild cat mining stock! But you rub your eyes and pinch yourself to see if you are awake and finally you realize that you have been getting this return from a bond of the government of the United States of America-the richest government in the world!
 Isn't it time then, that you began to think of this whole matter from the buying rather than the selling pont of view?
 Just a word of caution. Remember
 
 the rise to par in three months It is all based on reasoning which seems logical in the light of such facts as
 we have. We have been giving you the steps in that reasoning during the
 past few lessons If it appeals to you
 act upon it. At the very worst, and
 no matter how incorrect these con- clusions may prove to be, you will
 still have the safest investment in the . world at a cheap price.
 One thing is certain. It is just in-
 vestment ideas as have been outlined
 above that banks and wealthy men are putting into effect all the time
 They make their money work foI : them over and over again in the course of a year Somebody is buying
 all the Liberty Bonds that are being