Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-05-28
BOND SWAPPING TO
MAKE Up LOSSES
Unique Plan offered to Turn
Deprecated Investments
Into Assured Profits

There isn't bank or wealthy in
vestor in bonds in the United states
States that hasn't among the securities
in vault or strongbox a number OF what
is known in the parlance Of the street as
"cats and dogs"
The owner Of such weak bonds is
always ready TO listen to plan which
will relieve him of all or part OF
such holdings with the least possible
loss, but bona fide proposition which
will accomplish such a desideratum and
show a profit or perhaps two prohts
should make some people sit up and
take notice.
The following plan. attention to which
was called by one of the best Informed
of the leading bankers of thescity. mas
been sent out to its subscribers by the
Investment Registry Of America. Inc,
in the Morris Building. As can be
seen by n careful reading, the plan, 1t
carried out. gives the best results from
quick action. as it's success would act
favorably on the rate of exchange of
the country whose bonds are selected,
and in such instances the less favorable
the rate of exchange. at the time OF the
transaction, the larger the eventual
profit.
Briefly, the plan is as follows: the
ArgentiHe 4 per cent government bond
external loan of 1907 being used as an
illustration.
"As a banker with vision you realize
that the loss in certain of your bonds
Is not only a fact, but that in all
probability many years will pass before
these bonds return to your cost price
primarily, traction issues and per cent
rails.
1--WE have a solution to offer. as nearly
certain as anything can be in the world.
to make up this loss. % Sell your
weak bonds now. (2) Deduct the loss
sustained from your 1920 income tax
return. (3) Buy on the London stock
Exchange listed government bonds of
South American countries (where our
dollar is worth S0.97.)
These South American countries are
solvent and prosperous, but their bonds
sell at discounts from par on the Lon :
don Stock Exchange, because all bond
prices %there average lower oven than
here. Money is tighter. For about $3.50
you can buy 600. say. Argentine
Government per cent. worth at par OF
bonds and par of sterling exchange
$4S7.
This issue sold in 1914 at 91 per
cent of paris selling at present at less
than 60 per cent of par, pounds ster
| ling. and an additional discount in for
eign exchange. You have two dis,
counts-pricc and exchange. The bono
must be paid by sinking fund operation
" per cent annually and sterling
will return to more nearly normal. Fol
a FIVE year pull. it is reasonable to ex
pect the bond to sell at So per cent o.
par in London and exchange return t.
$3.50. or the bond that cost you les
than S230 will be worth $3S2.5O.
Take weak bond at present in youl
account now selling at 81, which cos
05. Sell it. Five hundred and sevent!
dollars will buy f250 Argentine As
which in five years should be wortl
$95j. making up the loss, while nettin,
about $50 per cent on your investment
"Other bonds of solvent foreign coun
tries. that have never defaulted, ant
have always met their obligations cal
BE- substituted for the Argentine bon'
used in the above illustration, the pric