The Prescott daily news., 1919-11-08
.7Ak|NG CHANGES LIN INVESTMENTS
 RISKY BUsINES ESS
THE MAN WHO MADE "VAsr FOB ioNeS" IN STOCKS" IS
 LARGELY MYTHICAL.
WHAT'S BEHIND COMPANY
Good Business Demands That safe+> of Principal Be Guarded and That There Be Outlet for
 Product.

That There Be Outlet for
 Product.
 fou can't get rich without taking chance" says the smooth promoter or the risky propositions that large snare of the public delights to buy
 The the promoters words are as false as his stock will be revealed to anyone who cares to study the meth. ods which have made men successful in their lines.
 Ask any man who is accustomed to getting good returns on his money how he decides whether a proposition is worthy of investment, and his answer probably will be that he first of all learns the identity of the men compos. Ing the company. The reason for this Is obvious. Of what use to invest in company that has an actual mountain full of gold, or hundred thousand acres bubbling with oil, unless the men composing the company are honest and will give the investor his share? Yet of the hundreds of thousands of small investors who annually sunk $500, 100000 in worthless securities be- fore the war, perhaps only one in 50 ever even inquired as to the reputa- tion of the men selling the stock and not one In 800 investigated the shad- owy figures composing the company"
 Having assured himself that the men he is to entrust with his money are honest, the man who is determined not 10 lose his capital must next as sure himself that the concern whose stock he buys has sufficient demand for its goods or outlet for its product to enable it to pay dividends. In the case of old and well-established busi- nesses this is usually very easily done.
 In the case of new companies, the in- vestigator always has the sanguine hopes of the promoters however hon. ! est there may be, to discount in the | light of known facts Statistics show that an enormous number of new busi- ! ness and manufacturing enterprises l fail every year. despite the honest and vigorous efforts of those starting them Unforeseen conditions or un- toward developments turn their ex pected dividends into deficits.
 In the light of these facts, can you put trust in the word of the man who says, "Take chance with your hard earned money? Hardly. The wise man takes the chance that the growth of the company will make his returns | bigger, but not the chance that his money is safe, or that he will get | fair return on it at all times. The man who makes huge sums of money in stocks" is more character of fiction | than reality. Many men have made fortune out of some one particular stock. They rrospered h@cause they had spent years in studJ ing the op- | portunities of the company behind the stock.
 Hardly. The reason that successful men put large sums into government securities is that not moment need 1 he spept in Investigating the safety | Of the money tHdl lS HI never have to worry about sale- ty, and have their minds free for pros ecution of their business.
 Before the war, $50 and $1OO bonds were not available for the man or small means. Nowadays the beauty or ln- vestment in government securities Is that whether a man has $50 or $b00,- GOO he can put it into Treasury SaV- ings Certificates put them away 10 forget about them, assured of the aD- solute safety of his money and or 2 good return. He is further assured that he can turn his securities pacK into cash at almost an hours notlce.
 At present he has the word or ali financial authorities of the country 'aat government bonds bought now VIII yiald him substantial increase Tn nrice in coming months. The history of all war issues of government bonds has been that they sold at premium during period many years before maturity. n,o+ If vou are willing to lose money that has taken you months or years to save take chances with it"; if you desire to keen it. buy Treasury savings Ger tifcates.