The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-05-15

nomena OF the present day is the pre-
taihng rate OF interest Twenty-Five
years ago - per cents" were synonym
Gus OF standard securities. Today, sound
corporations with excellent earnings,
are paying from TO per cent for new
money.
What Is wanted Is not really money
IN the sense OF paying operating costs,
Dut III utility company seeks loaa
and sells securities, what it really is
after Is steel, wood, paint, gravel, copper
and Ythe various other articles that go
INTO equipment" The persons who lend
o4the utility are those who can effect
a trltsfer Of these material things TO
the Itl,ity. Now the world is short of
material things. The war has depleted
the reservoirs out of which cur indus.
tries regularly draw their supplies, anu
this scarcity reflects itself In the rates
o. Interest, ust rs every other scarcity
in the world reflects itself. This situa-
ton will not last long Just now the
Utilities are inducing people TO save
heir money by offering higher interest
,stTrnS. u IS d similar situation to that
Of when a scarcity of labor exists and
The amount paid for an hours work
raises in response 10 the bids for that
labor. When there is scarcity OF wealth
ur " the products OF accumulated labor.
lhe world increases the bid for that. too,
That IS what is called high rate of in
.crcst. Very shortly, however, Il is 70
be presumed that the existing condition
70 vii be overcome and interest rates will
bo lowered Those who have been thrifty
and nave nurchasel securities in this
extraordinary period will continue to re.
ceive present high interest rates while
investors Of the hereafter have to accept
thu lower wage FOR the use Of Their
money"
Commodity Prices High; Investment
Securities Low
Initiation has Increased commodity
prices, but decreased safe security
prices A result investors, whether
having large or small funds TO invest
have never before had opportunities Of
buying good securities which bear such
high rates Of interest.
In June, 1914, the unskilled laborer
must have traded 54.S days labor TO
shares in utility company serving his
sqommunity or state, while in June, 1920.
"'ho could buy the same preferred with
li4 days labor. The farmer, in June,
1920. could trade % bushels OF wheat
for the same preferred which would cost
him SIS 1-3 bushels in 1914. This is
brought about because the prices Of the
preferred share, in keeping with prices
ot liberty bonds and other safe securities
fas deprecated about % per cent, whlla
prices Of commodities have scared to
'igh heights. This discrepancy in values
cannot last long. Deflation and liquida-
ton will bring the prices of commodities
and securities closer TO pre-war levels
When that condition is approached Sc.
curities prices will rise to meet the de-
flation in commodity prices and the pre-
sent day investor who has invested
cautiously in stable securities will reap
large profits.
Two Different Dollars are Existent
Two different kinds Of dollars are ex-
isrent today each having widely differ
ing purchasing powers. A "commodi-
ties" dollar spent for goods, clothing.
building materials, labor or other ne
oessities and luxuries will buy only
about 20 cents worth of what 1t woult,
before the war.
But an Investment" dollar. spent in
buyine,a well selected security, will buy
Q return in the shape OF interest nearly
what $3.50 would in pre-war days.
That many men and women having
savings 10 invest are taking advantage
Of the situati6m is indicated by the ex.
Werience Of one Illinois public utility
company. In the first five months Of
1920 an average of 1000 per month Of
citizens Of Illinois became stockholders.
the majority Of them purchasing from
500 to $500 Of preferred stock. A recen.
compilation showed that there are now
over 100000 owners OF public utility Sc
curlties in the state and this ownership
is growing rapidly.
Liberty Bond Buyers Heavy Invest
Ors
AS an aftermath OF the thrift INSTINCT
irstilled through the five war bond
'smpalens of Uncle Sam, a rae Of new
INVESTORS has been Grated Investment
bf savings by these men aud women
now education to save through their IA.
ir.otic efforts, is going on q, a con-
tEually increasing rlte and Ire more IA
70 ed securities have been those "
hJ'ce Utility cam paigns
She reason ssign,f for this Is the
continued hammering IN ia part OF
Uncle Sam that safety Is the first ele-
ment in any investment. Witr electric
hgtts. gas AL Ice Il the lo'u conipan.
Is ~ their JFr rames, tn - have a
yi.ihie evh'erce - inrir inve itment. so