Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1919-05-06
THE INVESTMENT TRUST

By Dr.. Frank Crane


The biggest object in the financial horizon
is the Small Investor.
In the general shake-up of war times he is
the big potato who has come to the top.
The financial world is realizing his SUI
preme Importance.
American industry has a gigantic task be-
fore it. 1t must feed, clothe and equip the
earth. To accomplish this task the prime
requisite, of course, is Capital
And where is the new Capital to come
from?
Uncle Sam, thanks to some of us who kept
prodding the old gentleman, has uncovered
it. By his Liberty Loan and War Savings
Stamp campaigns he has made the money
magnates see the Open Secret of Finance,
which is, that it is the poor men who have the
money Or you might call it the Paradox
of Capital which is, that it is the Little Eel
lows who are the Big Fellows
In plain English the enormous Capital
required for the Reconstruction Era opening
now to us is ready to hand in the pockets
of the $100, $40 and 25-cent people. Be-
cause there are so many of them. And be-
cause their money is cash, quickly available.
All it takes is an intelligently ordered cam
paign, strong appeal and guarantee OF
security, and these dollars will come pouring
into the industrial world, an irresistible tor
rent.
The most gold is in the low-grade ore,
rather than in pockets of huge nuggets, if we
can only devise the machinery to extract it
at practical cost. The Common People are
loW-grade ore. .:
The most important essential, in persuad-
ing the Commons to invest their money, in
stead of squandering or boarding it, is to give
them sense of security. The man with
only $500 saved up wants, foremost of all,
not to lose it.
A sensible suggestion in this connection
was made the other day by Paul NJ Warburg,
q well-known financier. He proposed the
formation of an Investment Trust This ought
to be feasible. The Insurance Companies and
the Savings Banks are today so organized and
safeguarded that the Little Man is not afraid
of them, and feels that his dollar is as safe
as the Big Mans million dollars. Cannot
Capital combine countrywide and secure to
the small investor his hard-earned" contribu-
ton? Listen to Mr.. Warburg:
1.-THE small investor needs protection. This
consideration has led me to believe it would
be very opportune for us to consider whether
at this juncture the creation of large in
vestment trust would not render very time
ly service. A large investment trust, organ
lied on a countrywide basis, might offer the
tWofold advantage of bridging the Interval
necessary for the better understanding and
further development of foreign propositions,
and for the creation of better market, while
on the other hand, it would enable the small
investor to buy obligations of such investment
trust representing diversified holdings closely
examined by the most competent people and
guaranteed by very substantial pad-in CAPT
tai stock"
Does this mean gigantic monopoly, autoc-
racy of Capital, and all that sort of thing?
Nay, nay; it means the furtherance of De-
mocracy in Business-call it Socialism if you
choose-and only by Cooperation and Or
ganization can Democracy endure while it's
ruin is rampant loose Individualism and
Competition.
copyright, 1919, by Frank Crane.)