New-York tribune., 1921-12-19
Bonds and Preferred Stock

Question: thank you for the advice
given TO me and am now writing for my
aunt Il woman over fifty with son.
>he IS earning about thousand year
end has $l,So0 in the bank. which she
teeis should be bringing in more than y
per cent From the advice you have given
others she has picked out the following ::
$500 y. Y. Telephone 6s, due l94l; $500
Rochester Gas and Electric rs, $500 state
CT Queensland Is l share United States
Steel preferred. VIII YOU kindly tell her
what these can be bought for and IL in
$soe bonds, and If she can have the in
,efest sent TO her. as you state Queens
land pay able principal and interest in N.
T. She will buy them if approved by
you) at her national bank up here guess.
Are these bonds, principal and interest.
safeP As she has deprived herself OF ne
eessities TO save this amount, / want to feel
up sum for her old age. She will not
need the interest. Also she Is determined,
with all that she can save from now on.
- put it into United States Steel. 1s the
preferred or common the better? Do you
approve Of this plan7 In place of the
Queensland. do YOU think the st. Louis san
FRANCISCO prior lien series 4 bond. selling
- a discount would be all right for her !?
n all OF those mentioned is her principa |
safe, And should she, need the money
'ouid she sell them through the bank
and obtain what she put into them? IL
sne VIII have any money over after buy
ing three OF the four bonds suggested.
VII Il be enough and will it be wise to
buy more Steel Mrs. q. A. @.
Answer-Your aunt could not have
picked out much better list, in our
opinion, than the one she has. BY all
means, however, sec that she puts her
money into United States Steel pre-
ferred and not United States Steel
common. We think that the ST Louis
San Francisco prior lien bonds are a
good investment, but under the cir
oumstances you describe we would
prefer the State of Queensland Z per
cent bonds. Your aunt can have the
interest sent to her and presumably
her national bank would collect it for
her, and all she would need to do would
He to deposit the interest coupons
The three bonds come in $500 denomi-
nations and the preferred stock in 500
par value shares. One thing you must
understand fully before you make the
investment. The price of even the
highest grade bond including Liberty
bonds, f1uctuates from day to day. All
of the bonds which your aunt is con-
templating buying are readily market
able. but it might quite well be that
they will some time or other in the
future sell at a lower price in the
market than they are now. and in that
case. if she should take them to the
'd@e W sen, Shc would receive the
market price for them, not the price
she paid for them. She wouldn't cx-
pect the bank to give her only what
she paid for her bonds if the market
price happened to be much higher
when she came to sell them than when
she bought them, surely. If your aunt
has any money left over either Steel
preferred or American Telephone and
Telegraph stock would be suitable
investment for her. In quoting you a
price for the bonds and Steel preferred
we could only give you a recent quo
iIon, and when your aunt comes to buy
them they may be selling either little
higher or little lower. A recent quo
tation on State of Queensland rs was
5000 per $500 bond; for the Rochester
Gas and Electric, $500; for the New
York Telephone 6s, $495, and for
United States Steel per 500 share of
preferred, $112.50.