The Washington herald., 1920-02-19
Z 7 T.
j. S. INVESTORS
OPPORTUNITY
Expert Points Out Excel
lent Situation Now
Existing.
BIG PROTECTIVE YIELD
Railroads and Other Cor
porations Forced to Seek
Unlimited Funds.
BIG PROTECTIVE YIELD

a. hODCTl VI
ment firm of Moorhead and Elmore'
members of the New York STOCK
Exchange, calls attention to the
Wonderful opportunities the United
states now offers the investor ne
speaks purely from an investment
standpoint. eliminating all specula-
tive phrases. Mr. Elmore says,
High grade raiIsoad. public utii-
itv and corporation bonds have for
a long time been selling at very
low prices compared with those of
former years This is due to the
great uncertainty which has sur
rounded foreign and domestic af-
fairs, TO a general readjustment Of
values to a higher interest basis,
and to long continued foreign SELL
ing. The outlook as regards rail-
ways seems somewhat improved.
The government has decided not to
undertake the ownership or opera
tion of the railways, and to restore
them to their owners on the first OF
IL Il
sized that the roads must be main
tanned in solvent and efficient con-
dition. There Is good reason to
hope that Congress will embody
this view in suitable legislation.
In any event il is admitted 6at
a wholesale foreclosurS OF railroad
bonds would be a national calamity
and must be avoided. Consequently
it would seem as " the present
price of railroad, and certain pubic
utility and corporation bonds ar
forded an excellent opportunity for
which should prove to
be- safe. and with an attractive
chance of On increase in principal
We would invite your attention TO
the bonds mentioned as represent
ing some Of the many selections
which may be made.
1T is purely matter Of luck II
the investor buys his securities at
the lowest prices they have ever
sold, and ct the present time IN
suggesting the purchase of bonds
and preferred stocks for an invest
men,, il must be bore in mind that
we are not prophets. We do, how
ever, feel that after the recent
shake-out In the market, that con-
sidering the enormous earnings,
high dividends. or large income re-
turn in the case of many specific
issues. that splendid opportunities
for investment obtain at the pres
ent time. Practically all of the
bonds and preferred stocks that are
being offered are intrinsicly worth
a great deal more than they were
years ago. despite the fact that they
can be obtained at materially lower
prices. This Is due to the fact that
the dollar has not the buying power
saats il formerly had. and conse-
ouentIy investment securities with
a fixed return have deprecated In
value to conform to the present
purchase value OF money.
with the United States govern.
ment issues selling on a basis to re-
turn about sig per cent on the In
yestment. railroads and other cor
porations are compelled to meet
this competition with government
securities by paying a higher rate
for money. that they are required
to borrow for their betterments and
etensions. and this factor, coupled
with the attractive returns of Ca
madam and foreign securities.
brings US TO the obvious conclusion
that individuals and corporations
are compelled to offer attractive
interest rates in competing with
the requirements of foreign govern
ments.
"As the world in time RECEIVERS
from the effects Of the war and
with the return of confidence in
governments and with a settled
foreign and financial policy of our
own country. it is reasonable to
suppose that conditions investment
wise will return more toward nor
NAL. and those who take advantage
of the present moment to invest
their funds in absolutely safe Sc
curities that will pay from per
cent to 9 per cent return. are bound
to enjoy increment in Drincipal"