New-York tribune., 1922-04-09
Whether to Hold French SIS

ftnanci1i Edstor. The Tribune, 49,
Ndssoa Street, Ne,e York City.
Whether TO Hold French SIS
oucs;ion--I have accumulated the fo,-
lowing bonds listed below not or my own
your daily talks to others. l am not de-
pendent on the income from came. VIII
you kindiy give the list the once over
and advise if any changes ar, desirable ?
Liberiys. sa.loo; Victory as. sex
Savings Stamps. s535; Brooklyn Edison,
1870 series d, 81 600: Northwestern Bell
Telephone IS. 1871, $4,000; Virginia Caro-
Ina Chemical 7i.s. 1892. $1,000. United
states Rubber tas. 1880, $1,000; French
ss, }s4f 5000; United States OF Brazil SIS.
1891, $1,000; Kingdom OF Belgium SIS. Is4l.
GOO; United Kingdom OF Great Britain and
ireland 5ss. 1887, $4,000. ". W
Answer-Your Lihertys, Victorys,
Northwestern Bell Telephone and
United Kingdom of Great Britain bonds
arc high grade. The Swiss, Belgian
and Brazilian bonds, United States
Rubber and Brooklyn Edison bonds are
good investments. The Virginia Caro-
lima Chemical bonds contain an element
Of speculation, although we believe the
company is strong one and the prin-
cipal and interest are probably safe.
AS for the French bonds YOU must
bear in mind that France has based it's
financial plans on the assumption that
reparations will be paid. If France
should be completely disappointed her
bonds might suffer in market value.
That would not necessarily mean that
the country would default in interest
On its external bonds. AS matter Of
fact, we have faith in the character Of
the French people and in their ulti-
mate ability to solve their economic
problem.
Just an Ordinary List
Question-WiN you kindly give mo the
benefit OF your valued opinion OF the fol-
lowing. as to whether I should hold sell
or jus. what changes I should make for
vestor. Would like TO get around per
cent. safety first: The list: Ten shares
nelaware & Hudson, cost l21.s,; seven
shares General Motors per cent deher-
tures, cost 90: FIVE shares General Motors
E per cent debentures, cost 9c43; 100
shares General Motors common, cost 90 81 .
six shares Simmons Company 7 per cent
preferred, cost 81: three shares Packard
o,,ss per zen. Sent -, preTerrsd cost loo5s; I'VE
cost 9s.5s; three shares United States Steel
> per cent common cost 1855; Ave French
erty loan, $500 fourth LSeyty yt 'Ioan" loan 500
ffth Liberty loan.--J. G. NJ
Answer-Your list, in the main, is a
good one, though We emphasize the
fact, as we must so often do, that
a good bond is safer form OF invest
ment thar 4 good stock General Mo-
tors common is purely a speculation
and has no place among g small in
Vestor's holdings. The speculative ele-
ment is also present in Simmons pre-
ferred and Packard preferred We
should prefer per cent bond Of the
type of the New York Telephone 6s.
a
voted to change the form of it's certif-
Gates, you will gain nothing by not
sending your shares in for transfer.
AS we understand it. the preferred
stock is not affected by the change,
except that the wording on The face
of the certificate will be altered.
Western Electric Conversion
one oges,iSnTwo 81 oSo w. y9srs ago nurchs sed
recommended at that time Now. aftcT
April |, they are cailable any time. They
are ar, convertible into nsw per cent cumu-
| Company Would you advise sendnc bond
in for conversion now2 Would not this be
very high grade preferred stock: Or
then reinvest on 5i5 per cent basis for
some good bond? ?-E. s. r.
Answer-The call privilege could
! have been exercised on Western Elec-
trio rs on any interest date since their
issuance. 1t is the conversion privilege
! that becomes effective April ! next.
Even if the bonds arc called for re-
demption you will have twenty days
after the date of the call to make up
your mind whether to convert your
bonds into preferred stock. You can
convert your bond at the present time
We believe that the preferred stock
when it is issued in exchange for the
bonds, will be a good investment. 1t
will give you the same return that you
are receiving on your bond.
Higher Yield Wanted
| Qucsttor--Do you advise making OK
| change of any of the following business
| mans Investments for Others OF higher
| Yield. and il what other securities dc
| you recommend that combine rcasona bic
safety with good yield? Hortonia Power
Company first mortgage 81, American
| Public Service first mortgage 6s. American
| Telephone and Telegraph bond. New Yorl
| Central common. st. Louis. Springfield <
| Peoria Railroad bond, Onion Bag and