New-York tribune., 1921-03-14
Investor Led Into Margin Trading

Oucstion-Beirg constant reader or
The Tribune and enjoying your hn"nIT,. rrrIt,n!
| to know your advice on the following
stocks which I have purchased from MI !, !,
whom I havo close friendship ! am =
working man and this Is the savings OF
twenty-five. years of labor. ! have wfG
and two children. aged twelve years and
ono year. both girls. What want to
know Is whether have good reliable
stocks on which could make money later
on or whether 1t Is better to put in re-
| planning to buy home two years from
now or as soon as building material taTes ,',es
this money where l could realize by sell
ing. have bought outright five shares
OF United Fruit at s2o1-$l. oo5; ten shares
OF Guaranty Trust Company at s345-
$3.50: ten shares of Lawyers Mortgage
| Company at sl2o-sl. 200: ten shares OF
| Swift International at s32-s320. Total,
1876. bought these the first wcek IN IN
| September, 1920. e1 dividend. nave
drawn SIS In January for Guaranty trust
| Company and Lawyers Mortgage Company
and will get five shares of United Fruit, or
100 per cent dividend. Last week this
same agent met me and adyiscl me 70 TO
| buy Underwood Typewriter Company. |
told him he had about all the cash hau
except $3.50 in Liberty bonds. which want
TO keep for my children when they arc
twcntyone years Old lie told me my
| other stock would carry Underwood and |
would make money on it without doubt.
| He expected a 100 per cent dividend or
| himself in my position and If he really
thought 1t not too risky 70 get some. SO he
bought ten shares Of tnderwood nic TYPE
am carrying on margin since making
these investments ! do little worrying
now and then. as am new to the business
at the per cent. It's low. but safer. but
like good many more wanted all !
think they have me on the sucker list.
the brokers term It. hence am writing
to get your expert advice, hoping 1t is all
me. The per cent Danish munc pa |
| bonds in your issue OF January so look
gOod.--W. Il
Answer--There is no need of specu-
lating, as you have done in your pur-
chase of Underwood, in order to get a
better return on your money than the
per cent paid by the bank. The in
vestment market offers many attrac-
tive securities which are reasonably
,, safe, and which can be bought to-day
at prices to yield the investor 6 to 7
per cent. The bonds you hold outright
appear to be good, but there is an cle-
ment of speculation in them which
must be considered. If you want to
invest your money for two years CON
slider the new issue of $25,000,000 Of
two-year Z per cent notes offered this
week on behalf of the Humble Oil and
Refining Company, one of the principal
producing subsidiaries of the Standard
Oil Company Of New Jersey. These
notes can be bought to yield around
TX per cent, and you won't have to
worry about getting your principal
back at the end of the two-year period
when the notes fall due. This is one
of many investment issues that you
might consider You already have a
loss in Underwood. and We fear you
will never have any peace of mind as
long as you carry it on margin. You
had better sell your stocks and get into
bonds. We frequently mention issues
which are suitable to your needs.