New-York tribune., 1922-03-12
Investment for Family

Cuestion-We are Il brother and Two sis
ters. constsn readers Of The Tribune, who
began two years ago to buy bonds and pre-
ferred stocks to, set little better return
on our money, and in many instances have
followed the advice which YOU gave to
others, and we want to express our CRATE
full appreciation of the help you are rem
dering to such people as ourselves VINO
are comparatively ignorant OF financial
forty-three and fortyfve years old and
unnl married. None Of US enjoys very good
health so that it might become necessary
at any time for US to retire TO tha coun-
try and live the income from our invest y
ments Therefore safety Of principal and
certainty of interest and dividend pay
ments are of prime Importance. We would
be glad II you would kindly criticize our
holdinga and condemn any you think un-
suitable. Please, too. give US suggestion
for $1,000, as the brother has this amount
aN AHA Die for a bond. We are not using
self have about $4,000 in savings banks
which VIC Will keep intact to be used to
purchase home should We ot. Be forced TO
erty Loan, 1928; $4,000 Grand Trunk Rail
way of Canada 7s due l940 State Of Ore
son 4'as. due 1913; $1,000 state OF Calitor
City of Ottawa. Canada. 6s. 1910; Standard
Oil OF New YorI, Is, 1881; State Of Queens
Iand Australs IS l94 ve shares A1neri
shares United States Steel preferred Is ten
shares American Bank Note preferred 6s
ortsage esrtheste Ti.le Guaransee and
of Michigan 5Ms, ls41: South Dakota 5Hs
1871, State OF Washington S. 1889: Prov
Telephone of Pennsylvania rs. 1916; $1,000
OF each; also $1,000 Lawyers Mortgage
COMPANY mortgage certificate 5ias, due
1927; 5000 New York Edison GAs. i94l
$500 Liberty bonds. I myself hold $1,000
City Of milwaukee IS, due 1880; Detroit
5las 1898; United Kingdom OF Great Brit
Northern Railway Gas, 1915; $3.50 Liberty
bonds. five shares United states steel pre-
ferred IS. five shares National Biscuit Com
pany preferred Is. On your advice to
others nay brother bought the Queensland
bond but later noted that you spoke in a
derogatory manner concerning it, and 1
and buy a New York Edison bond In its
place. but was advised not 10 do so, that
stil holding it. Would add that we do
not care for foreign bonds or railroad
bonds, as we have not much confidence in
them.--M.
Answer-We have no criticism to
make Of your brothers list. Despite
the slight sacrifice in yield, we think
it might be advisable to place some
funds he has in the third Libertys
maturing in 1928 in longer time Lib
ertys, such as the second AIS, falling
due in 1912, and the 4th AZ s, maturing
in 1888, provided he desires perma
nently to keep funds in United States
Treasury obligations, which we regard
a. the highest type investments. There
has been criticism, particularly among
certain London bankers, of the policies
OF the province of Queensland, yet
from the standpoint of regularity Of
income and safety Of principal we
have no reason to question the safety
Of its bonds. However, if you lack
confidence in foreign bonds the New
York Edison issue would be suitable
substitute, though it is debatahla
whether it would strengthen your in
vestment position. Your sisters list,
in our opinion, requires no revision.
Your own securities were we'll selected
also. For your brothers $1,000 we
suggest either Virginian Railway IS,
1862, recently selling at 91h, or Ca
madam Northern 61ss, 1946, recently
selling at 108Ss. We think you could
safely hold these despite your preju
dice. lol are wise to keep a reser-
voir Of "a 4 in savings banks deposits.
which d.vos les your nvestment In
view OF l. fact that the return is
only per 'e's. and that you have no
immed ate icel for the fund, how
ever, you might consider reducing the
amount and investing what you with
draw in longer term Liberty bonds
or other readily marketable securities.