New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-07-18
Stunned Partial Payment Plan

Queation-~1 feet that you arc doing
great good IN teaching people to leok be-
lore Ie they leap in Investing their money.
II seems to mo that If financial education
such as you provide had been available in
the past great many unfortunate losses
OF savings would have been avoided For
some time have been making invest
ments in small way l am able to save
about $50 or s7b month. This lent a
or gamble with It, / am married.I have
$1,000 in Liberty bonds OF different Issues,
bought during tho Mt par. $2o5 in
War Savings Stamps. 5000 that lent to
friends several years ago on which re-
ceive per cent interest. $1,000 Chicago,
Rock Island Pacific refundins per
western Telephone s. Telegraph stock,
bought at park; about $500 in savings
bank I'VE shares of building and loan
and $4,000 in life insurance, including
two $1,000 endowment policies which have
about thirteen years to run. The fore
own outright What do you think of
the partial payment plan of buying
not much better than playing the market
on margin. ] should be obliged for your
advice: Last February I was induced by
S. s. Ruskay e Co. to buy ten shares of
Pullman stock on the partial payment
plan at 1o7a. Ruskay's agent pointed
out that by acquiring the stock in this
way l could have control of 1T without
paying for 1t outright, and that 1t would
undoubtedly go up to 1875 or higher very
great advance" which was to take place.
On the contrary, the stock has only once
or twice been anywhere near the figure
at which purchased 1t, and on one occa-
sion it was down to Ssia. At that time
they urged mo to take ten shares more Of
Pullman, putting up some OF my other
so, however. as ! could not be certain
that the stock might not go down still
lower. AS matters turned out, the stock
has advanced to some extent and could
have made $40 or $50 by following their
suggestion, buying at 90 and selling at 80.
That appeared TO be more or less in the
nature of gambling, and l preferred to
take chances. Ruskay's salesman ex
plained that by. buying more Pullman at
Il lower figure the average price would be
lower. which is perfectly true, but l have
as much stock in this particular concern
as / think Is necessary. These same peo-
pie NRuskay) keep recommending other
common stocks, but l have pasesd up their
suggestions. Buying additinal speculative
| stocks seems to be throwing good money
after bad. month ago friend Of
mine, who is bond salesman for Red
I mond e. Co. sold me 81 900 Brazilian
8 per cent twenty-year bond. I obtained
per cent. deposting my $1,000 in Liberty
bonds as collateral. The friend referred
to, who has apparently had consdera BILE
the good points of tho bond to me. A
sinking fund was to be provided, secured
in common with other Central and South
American countries, have had tho reputa-
ton of being irresponsible in the matter
OF financial payments in the past. 1t was
stated that. although this had formerly
been the case, there was nothing to worry
about on that score In this instance. 1t
was also pointed out that trade between
this country and Brazil has increased
enormously in recent years, and that the
per capita debt Of Brazil is only $50. The
Brazilian bonds were compared favora bly,
to those of European countries. in that
the former is non-callabie. while the
bonds of Belgium, France. Switzerland.
J Denmark. Norway, etc. ght be called
in at any time. Another point mentioned
was thai Europe is afflicted with unrest,
| which is likely to develop into Boshevisln,
/ while Brazil is unaffected. 1t fur
/ ther explained that in the event of Brazil S
| defauting on the payment of interest or
| principal. the United States could send
warships ther to enforce collection AS
soon the bonds were little more wide
| ~ distributed, and people became more
! familiar with their merit. it was believed
| that they would sell higher. After con-
sdering these points I was quite convinced
| that the brazilian bond an excellent
! Investment. but I have since noticed that