New-York tribune., 1921-06-26
Woman Demands Freedom from Worry

Question-while I read your advice and
shink Of the very real service you are rem
Herring to the many people wishing to put
their earnings into safe securities, l wish
I had had the same opportunity years ago
when ] purchased common stock in the
then good railroads l have twelve
Great Northern perferred, about which you
seent to feel dubious. It is much less
than when bought it that am hesitating
about disposing of It. Don't you think IL
Will come right In time? Six shares OF
Chicago & Northern common, too, and of
preferred twelve shares These once gilt
edged, now poor, l want to keep for
better times If you think they won't be
TOO long on the way. Following your ad-
vice ito others) I now have a Canadian
Northern and two Great Britain 512s.
1sS5t | now want your advice as to what
get the lower priced bonds maturing
around 1910 Or to buy the newer issues?
Are the older issues any safer? Like all
get, but I do not want to be worried to
death half the time lest I become stranded.
q must earn my living, and when no longer
able TO earn ] must have something to de-
pend upon. l cannot be in active work
Tor more than five years. it is almost
rose colored, exactly. The unrest both
here and across the ocean makes me hest
tate 70 do anything without the advice of
competent Judge. 1 want safety OF prin-
elpal and 1nterest--~rna rket Ia bility is less
fmportant. for wish to keep the securi-
ties until maturity. Something to depend
list for me? Do you think Northern
States Power suitable" / forgot to mention
5000 IN Liberty and Victory bonds.--M. D.
Answer-lt is hard to make up one's
mind to sell stocks like Great Northern
preferred and Chicago e. North West
sern common at time like this because
Iof the loss entailed, but the fact re-
mains that those issues are specuia-
tive and there are many elements of
serious doubt in the railroad situation.
S1ou have not many shares, however
whether to sell depends on whether
You think you can afford to take any
risk with that part of your total capital
which is in these issues. AS long as
fyou arc earning money now and will be
sfor some years, we think it best for
you to buy safe bonds of the older, low
coupon rate class, because you will be
able to save the discount on them be-
tween now and maturity. In other
words, If you buy 4 per cent bond
at ~ at maturity you will receive 100,
whereas II you buy per cent bond at
par your principal does not increase
between now and maturity. This plan
only works when you can afford to
forego some of your yield year by year.
Therefore. we suggest that you put
your $4,000 into the following good
bonds: Illinois Steel debenture 4hs,
1910, at about 70, to yield SIT per cent
current, 6.5S per cent to maturity;
Southern Pacific Central Pacific col
lateral 4s, 1949, to yield 5.8S current
and 6.49 TO maturity; Southern Railway
development and general As, 1856, at
90 Il, to yield 7.24 current interest and
ia to maturity; Oregon Washington
Railroad and Navigation first and re-
funding As, 1861, at about 6e7s, to yield
BIZ current and 5000 to maturity, and
the Norfolk d. Western convertible as,
1882, at rs, tc yield 5.3S current and
7.33 to maturity.