Alma record. (Alma, Mich.) 1878-1928, 1922-09-14
LIBERTY BOND
OUTLOOK! GOOD.
BABSON DISCUSSES OUTLOOK
OF LIBERTY BONDS ON
MARKET.

- great many OF our IedueTS nave
Liberty Bonds and wonder if it is
not time to sell them. When they
went down into the SOS people We're
frightened and threw them over. Now
that they have come up TO par, and
better, the same people are buying
more. This is queer little world.
In view Of the situation Roger w.
Babson issues the following state
ment:
1T is true that the time to buy
bonds is when no one else wants
them and the time TO sell bonds is
when everyone wants them. Hence,
/ strongly recommended the purchase
of Liberties two years ago when they
were selling i'm the SOS. | am not
convinced, however, that the time
time has yet come for selling them,
even tho they are acting rather
queerly at the moment. .f
"People are worrying as to what
effect the railroad and coal strikes
and other industrial disturbances will
have on the price of Liberty Bonds,
Americas greatest and most popular
Investment. 1t would be only natural
That these disturbances should de-
press the price of Liberties a little;
but such effect would be only tenn
porary. Money is destined to be
even cheaper than it is today, and in
terest rates will continue fairly low
for some time TO come. This means
that banks will again come into the
market to buy Liberty Bonds. These
purchases by the banks, together with
the purchases of the Government,
must keep the price up and quite
likely force still higher prices. There
fore, | definitely advise readers to
hold their Liberty Bonds believing
that they will ultimately sell for
higher prices. Be prepared, however,
for a possible temporary decline in
order not to be panic-stricken if such
a temporary decline takes place.
"The Fourth AIS are today SELL
ing at little over par and are call
able at par in 1888. Readers can be
pretty certain that the bonds will be
called at that time. This means that
on the 18th of October in the year
1888 these bonds will sell at par. Not
one per cent above or one per cent
below. With a constant interest rate
between now and then the bonds
should be at their highest point about
1927 or half way between now and
their callable date. The same rule
applies to all Of the different issues
with their various maturities. Of
course, it is very likely that the Gov
eminent will provide some general
refunding scheme before all of the
various issues of Liberty Bonds are
due or even callable. But if so, such
a plan will be favorable to the hold
efs. l certainly advise readers to
hold their Liberty Bonds until such a
refunding announcement is made.
after selling Liberty Bonds be
careful in what you invest. A great
many money sharks will be on the
surface of the water looking for fish
when this refunding plan is put into
operation. People are already travel
ing about our cities hunting up hold
ers of Liberty Bonds and offering to
swap for them various kinds of stock.
Beware of such men. Don't talk to
them or even listen to them! Shun
them as IL they had smallpox. When
you wish to invest money ask the
bank, where you have your savings
account, to recommend some good in
vestment firms. Go to them; tell them
your condition, and put them on their
honor to protect you and your family.
In ninety-nine cases out of hun
dred you will get good honest advice
which will be worth money to you.
When your Liberty Bonds become due
or are called for payment, follow the
same course. Either put the money
in the savings bank or invest it in
securities which a good investment
house recommends. There are plenty
Of such good reliable houses.
Zone need not wait until his Lib
erty bonds become due before getting
A8ittle experience in investing. I'm.
der the present system of selling high
grade securities in 500 and $500 de.
nomination, it is now possible to pur.
chase good bonds from reliable in
vestment houses with only a small
amount to invest. To buy one Of
these "baby bonds" is very practi
cal means of both saving money anC
becoming interested in securities
This is not something which SHOULD
be done when securities are high as
is the case when the Babsonchar
shows business to be considerable
above the normal line. Today, how
ever, with business about 8 per CEN
below the normal line, such securities
should be worth more in the years
to come.
much more money is available to
day for investment in Government
municipal, railway, public utility, AM
sound corporation bonds than at an!
time in the history Of America. 1t il
estimated that there has been an in
crease Of available funds for invest
ment of over 500 since 1914. o
course, on the other hand, the need
Of the world for construction pur
poses are enormous and have prob