The Washington herald., 1921-08-09
UNSETTLED STOCKS
AID INVESTMENTS
IN SAFE SECURITIES
Many Investors Turning
To Non-Speculative
Issues.
OTHER LOCAL NOTES
DC. Issues Dull = Bank
Changes Near C9Mplexion.
Perssszls. ~

n1ed rate of interest. whiea could
never increase or decline in value,
did not arouse much enthusiasm
when soaring stock prices led some
investors to overlook such things
as safety and security. In recent
months there has been \ decided
transformation. Experience, the
great teacher. has taught a large
class of investors that safety and
security are not to be overlooked
when investing ones savings. Not
until. they were caught in the whirl-
pool of an intensely speculative
stock market did they see the I'M
portance Of conservatism. Amer
leans have found il easier to make
money than to hold on to II. our
people are good earners but not al
ways wise investors.
xt present the troubles of the
railroads at home and the unsatis-
factory condition of the foreign
markets have affected the bond
market to such. an extent that it
win probably remain unsettled for
an indefinite period. And investors
who do not want to deal in uncer-
families are turning to real estate
mortgages as the safest form of
investment
Due to the Liberty Loan cam
pafSns and. more recently. to- the
unsettled market conditions thou
sands of investors have turnal to
Investments possessing safety and
security as their prime factors.
Mortgage investments are probably
the leading form of nongovern-
ment security suited to the needs
and requirements of the new in
vestor.
Mortgage bonds are nothing more
nor less than fractional equities in
old:fashioned mortgages of the
kind people used to swear by. Some
OF the advantages of the mortgage
bond over old-time mortgages are
readily apparent For example.
safety is not the only point con-
sidered: the consideration of the in
come from the mortgaged property
is just as important as the margin
Of safety. Present-day mortgage
bon issues are based upon the
same abundant oId-fashioned mar
Sfn Of security combined with an
annual curtail arrangement (known
as amortizationD for which tie
earnings of the property act as a
sinking fund. assuring the steady
reduction of the mortgage.
None of the disadvantages of the
speculative investment accrue to
the buyer to a mortgage bond. The
demand is becoming SO apparent
and the market for these securities
is being so soundly developed that
their liquidation and cOnvertibility
are more pronounced than ever be-
fore,
OId-established investment houses
specializing in mortgage bonds
have realized the need for bonds of
small accounts, and now the small
investor may purchase mortgage
bonds in small denominations
which constitute a direct first lien
of zeal estate security.
The unquestioned soundness of
conservative mortgage securities
issued by Iong-established compa-
mics which have proven their in
tegrity and thrifty investors who
cannot afford to trifie with their
savings are becoming extremely en-
thusiastic about this popular form
of security.
Local Securities.
Trading on the washington STOCK
Exchange was very dull in the
opening session of the week yes
terday. Capital Traction IS were
disposed Of in the initial sale to the
extent of $1,000 at s71a. while a
like amount of Potomac Electric
debenture IS sold later on at "a.
twenty-five shares of Washington
Gas Light stock at 43 was the fea-
ture of stock dealings. In addition
to- this six shares OF Mergenthaler
t-Hsh and eight shares Of wash
ing gton Railway preferred at IS
were recorded.
Changes Near Completion.
The complete renovation of the
National Bank of Washington is
rapidly nearing an end. The mar
Bile and bronze fixtures are now
being put into place and the Mosler
safe deposit vault. containing 1000
boxes is being installed.
Personals
Richard W. Hinson, manager OF
the local office of the National City
Company, is spending his vacation
at Atlantic City.
G. Bryan Pitts and S. ]. Henry
eeIpresidents of F. II. Smith and
Company, are spending a weeks
vacation at Hot Springs, Va.
George +. Hamilton. president OF
the Capital Traction Company, has
returned to Washington after
spending three weeks at Moosehead
Lake,