New-York tribune., 1921-01-31

Dul1IlS tiiic 1Cllou IL WdS HUI uIluSual 8
for obligations to be discounted bv
the commercial banks of London at
rate Of 19o per ann,lm, and even
lower.
True investment securities have
passed through these. periods un-
scathed, but generally having been
compelled to take a great depreciation
in market value before the crisis was
reached. After the crisis, and a.
money rates have gone down, invest
ment securities have steadily gone up.
In 1893 our financial markets n
America soon followed the English
markets. British Consols went uu
in the English market to price which
gave the buyer but little more than
2.4%o on his investment. Many Of
our industrial bonds vert up to q
price which yielded the buyer much
less than 49o. Many Of our common
stocks which were regarded as invest
ment securities took market value 50
high as to yield the buyer less than
so. Nearly all municipal bonds
went up to price where they yielded
the buyer 80 or less. New York
City bonds sold at a price yielding
only 1857 The New York Central
bonds sold on the market at pr;ce
yielding the buyer scarcely more
than go:
Now, that is one Of the rea-
sons why we say, "Trade your
inflated dollars into debated
investment securities, and-do
it now"
If you want to buy short time
security, or one with a cali price only
slightly above what you pay for it,
you may have your reason for doing
so, but that is not what we would
recommend.
If you buy the right kind of Sc
curities you will see them advance in
value, while the money you now have
will sink in its rental value. The
mortgage which comes due two years
from now may have to be reinvested
at very low rate. Banks that have
been willing to pay interest on daily
balances may have to send you
courteous note saying that hereafter
they will have to revert to their for
mer practice of paying no interest on
daily balances.
Business inactivity or business de-
pressions mean inevitably low rates Of
money. Low rates for money n,earl
high market prices for true west /
ment securities.
While the market offers many won-
derful bargains in the way of specula-
tive securities, we believe, ncverthc-
less, that the true investment secure
ties on the whole will yield much
higher profit in the aggregate than
the speculative securities.
AS we referred to the difficulties OF
Messrs. Barring Brothers, let us tell
those not familiar with this bit of
financial history that while this house
had it's difficulties it was inherently
sound, and in due time emerged from
it's troubles and is to-day one Of the
outstanding international financial
houses, held in great respect by the
financial world.
Our own financial houses proved
their strength in the crisis they faced
in the Latter part of 1920. Most OF
our business concerns that have not
emerged from their difficulties are, as
Barring Brothers were in 1893, in.r
herently sound.
Now, in our opinion, is the time to
Z buy investment securities. Public
buying has been going on actively
since before the first Of January.
Many of the bargains have advanced
materially, but there are still plenty
Of equally sound investment bargains
to be had.
If you do not want to come to us
for advice, 90 to anv financial house