Alma record. (Alma, Mich.) 1878-1928, 1921-06-16
Facts and Figures
in Financial World

Pointing out the fact that in a
period Of depression it is time to buy
securities b. c. Forbes, noted finan-
cial writer and editor of Forbes Mag
azine, urges small investors TO follow
in the steps Of the long headed" and
'long -pursed" individuals who are
accommodating securities now.
Analysing the industrial situation
MIR. Forbes asks;
did yod notice reports that the
u. S. Rubber CO., the largest rubber
company in the world, has begun TO
lay in stocks Of crude rubber ut the
less -than-cost-of- productions prices
now ruling?
The Western Electric Co. is under
stood TO have placed heavy orders for
copper. The Western Union was re-
Gently reported to have contracted for
100000 pounds of the same metal.
The Pacific Gas & Electric Co. Of
San Francisco has just taken sim
liar amount, and has contracted for a
vastly larger amount at the very low
prices now quoted.
Very powerful interests in the old
industry have raised many millions
capital and have invested it i'm the
purchase of immense quantities Of
crude oil to be stored until prices,
now almost the lowest ever quoted,
recover-as everyone in the industry
is confident crude oil prices will. Ger
tain capitalists identified with other
manufacturing industries have like
wise had contracts placed for large
amounts Of low priced raw materials
for future requirements.
If the facts could be ascertained. it
would doubtless be found that
wealthy men have made heavy i'm
vestments in securities during the
period when bearishness has been
running riot, for fortunes are made
in investments by courageously buy
ing az such a time as this, when very
high income returns can be obtained
by holding on until the security mar
llet has advanced very substantially.
No matter how pessimistic any man
Of affairs may be at this moment, he
is willing TO admit that decisive
recovery in security quotations is
bound TO come sooner or later.
In other words, the longest-he
and the -pursed interests have
absolute confidence that the whole
situation viii undergo transformation
by and by Consequently, they are
acting on the axiom The time to buy
is when everyone wants t. SELL
My own opinion still is that, if
those who run things viii only handle
the situation with business states
manship, there is no adequate reason
why bcttermeat should not make its
appearance very shortly. leading TO
pronounced improvement after the
proVerbial summer dullness" has
passed.
There is justification for. expecting
lower federal reserve discount rates
lower rates by banks for desirable
: commercial borrowers; the establish.
ment of important machinery for fl
nancing both agricultural and indus
trial exports. better railroad earn
inCs; adiUstmcnt Of railway and
certain other wages without precipi-
Eating grave disturbances; fairly
prompt reductions In prices for steel
and other product~whicha are still re-
garded as utenably high; increased
consumption all along Che line as
prices become more attractive TO the
public; a decrease in the number oil
commercial failures; improved condi-
tiQns and buying power throughout
our vast grain growing territory, as
a result Of higher prices for grair
and lower labor and other production
costs; some further clearing away OF
European clouds; and the Inaugural.
ton, before very long, Of an upward
movement in attractive securities.
Remember, it is often darkest be
fore the dawn.
Copyright, 1921, BY b. c. Forbes
Reported to the Record by Statistical
Dept. Of +. T.. MacCronc & Co.
Members Of New York Stock Tx
change).