Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-12-17
}ABs0t WOULD INVEST
IN GOOD BONDS NOW
ccs Prices of Other Things
Coming Down-Moncy
More Valuable.
INTEREST no nUY MORE YEARLY
'innncicr Declares High Prices or
OF hccent Scnrs. But Repeated
History OF This Country During
the Past $50 Years.

the Pnst $50 Years.
d Especial 10 The Times dispatch
WELLESLEY HILLS. MASS. Dec.
r. l322-Therc has been much dis
usSIon OF late az TO whether bonds
ave reached tn" top. Roger W. Bah
Ton evidently thinks not In dis
uss'hS thc situation today. he calls
Ftehtion to tho long swim, bond
ycl" ana appears 10 nave $50 years
financial hiatory on his side.
TN" cheapest thing know OF to-
ay.' says Mr. Babson. III the PROM
So OF $50 year for the next twenty
ears, secured by "a MORTGAGE bond.
ust now this $50 w!ll buy perhaps.
k-ru!t Of clothes. Ia 1920. 1t would
have paid only for tn. coat and one
8rmhole Of the vest. W" all can re-
MEMBER wncn 1t would hnv. bought
wo suits. az good as the ono ii viii
NY now. Everybody IL hoping for
hose old prices 10 come back. And
othiug is morc likely than that thcy
pm come back pDmc time within the
ext twenty years.
HIVE Hrrn ns High before.
Most OF us. Judging from our own
Experience. think o: 1920 commodity
rices as Ia" hiFh-for-all' time. what
cen as high three times before. at
0ntcrvals ar about Hfty years and that
ctwccn the peaks. each time. they
ave touched levels AZ low az in
S3C.. While earlier statistics hav"
OF been compiled. there are data
nough 20 suggest that this game
wing from nigh prices 10 low prices
nd back again. over long periods.
8}!sht b. traced far back Into his
DRY.
Prices turned At the same old
8eak in 1920. u Is exactly In accord
!th pas. experience that there should
Q short upward reaction. AT ,his
lime. from tho Arst sharp decline Of
ist year. Bat. IL would be against
ur economic history II prices did
%, show a long. slow trend towards
\ Level mat more nearly cquallzcs the
uying power Of agriculture with
HAT Or tn" manufacturing Industry
h" fact that the mass oi people cx-
Beet lower pTlgcs-ut course. for the
3ihcr fellows ruOds-h"!ps 10 bring
hem about Psychology as "A price
actor may y" more potent under Ger
ain conditions. than the supply OF
old.
Money Coo, Up. Prices Go Down.
AS prices o: goods 20 down. the
= aluc OF money goes up. That's only
nylns the same thing backwards.
hen every one who holds contract
- gr"cinE 10 pay him stipulated
mount Of money every year. lik"
| ent. or the interest on bond has
.Imcthi1g that l., worth moro. year
Ter year This holds now just as
hc opposite VAS true from 1919 to
&e2o Then these same l"ug-tcrn
cnds loEt value because prices We're
itng sharply.
i have tud.uyored above" con,in-
ed Mr. Bihs Oh. TO state briefly and
3ndcrstaHd!uEly the lutlucnce tending
o cause what We kuow AZ the major
ona cycle. fundamental move
mt .,h!,l.slo investor can afford TO
gnVre. ::
Gives 5Grcnt Opportunity.
8 This - !Iral y"aTcnd market pro-
Il lcs :. wonderful opportunity for In
Il cstors Who have !ouds and faith in
I've United stairs. The Lesson or the
Is, few weeks again Is that no APP
raisaI Is accurate which ncglccts
fundamentals. The same people who
HecOgnIzed The Ucsiun!ng of = bear
market last month are certain that
I!ngs are going UP today. But the
fundamental situation has remained
8hc same as three months ago. When
II verybody wishes to sell Is the time
hat Informed buyers car c;u!!y pick
God bonds of the bargain counter"
Increasing stock market activity
8nd Christmas buying have worked
= together to bring business UP 10 a
Il ormal level. The !nd"N OF tho Bah
BON chart shows general activity cN-
u city at the normal lime This Is the
Highest point since September. 1920.
,. Is is an encouraging sign. ac-
4 Grd!ng TO MIR. Baoson. who expects
ctivity TO be slightly above normal
! or the next four TO SIX weeks. Things
H.in then let down a bit, according to
8he statistic!an and the foundation
&,f Fundamental conditions Will he
= cmpicted for the next period OF
#rosper!ty.