New-York tribune., 1920-02-22
Element Of Gamble Present

Question--I understand that you do not
give advice on speculation. bat In considering
this inquiry please bear IN mind that am
not seeking advice. but simply information.
Your answer will not be construed as an
opinion for which will hold you responsible
Now. please list five railroad bonds and Ave
foreign government bonds which so low
In price as to afford an opportunity for a
large gambling profit in case they turn out
all right and which arc not in such hopeless
covery.-P. II. c.
Answer-The real idea Of this column
always has been to endeavor to give
inquirers the best information avail
able regarding investments. We have
| refrained from giving advice regarding
speculation for the reason that too
many elements enter into it for us to
attempt to do so. During the last
month many securities have, in our
value. The reason for this has been
that when flood of liquidation is in
process values are not considered. Ac-
counts are forced into liquidation both
because of lack Of necessary further
margins and because Of the fear with
which SO many become imbued when
securities are declining in price. The
railroad situation is improved in that
both houses of Congress are practically
agreed on legislation. That period Of
uncertainty appears to be over. 1t re-
mains now to be seen how the railroads
will manage under the proposed legs-
lation. The following railroad bonds,
while not of the highest grade, appear
to be fairly we'll secured and return un-
usual yields at present prices: Denver
Rio Grande improvement s per cent,
1928; st. Louis Southwestern Terminal
s per cent, 1852; Erie prior lien 4 per
cent, 1898; Chicago & Alton 8h per
cent, 1850; St. Louis & San Francisco
ing foreign bonds offer, we think. un-
usual opportunities for speculative IN
vestment purposes: Chinese Govern
ment 8 per cent, 1851; City Of Toxic s
per cent loan Of 1919; Belgium per
cent internal loan Of 1920; French 5
per cent internal loan of 1920; British
per cent internal, annual drawings.
Not an Optimist
QuesVon-Bought twenty-five shares Of
stock oA margin when selling at 72. During
recent ilump stock has dropped to 30. I
will it cost me? In the opinion Of the
writer, the country Is due for a panic; in
fact the stage is all set. For example, the
high cost of living. labor unrest (not only in
this country. but throughout the world), de-
creased production. uncertainty Of peace
treaty being signed. low rate Of foreign ex-
change and unsuccessful efforts to remedy it,
and. to cap the climax, the Presidential cleo
ton this year. In view of the above condi-
tions. would you think It wise for the writer
to sell his Liberty bonds now. with the ex-
pectation Of buying them back at a much
lower figure, or. II the foregoing does come
to pass, will the government see to it that
the bonds do not depreciate within fixed
amount7 Is It in their power ?-J. w. B.
Answer-The debit balance on your
account is the sum you will have to
pay to own the stock outright. What
ever takes place over the period con-
corning which you have such dire fore
bodings, the wisest thing, we believe, is
not to disturb your investment in Lib
erty. bonds under any circumstances.
While it is within the governments
power to help stabilize the market for
ITS war securities, no price limits have
| been fixed