The Bismarck tribune., 1922-03-03
By ,NEA Service

| BY NeA service
New York, March 3-"HoW can
safely invest my savings?'
This question is being asked jby
hundreds of thousands who see the
nation entering new era Of "frenzied
fnancs"-and are dazed Iby failures
of brokerage firms, investigation OF
bucket shops by the district attorney
of New York and other cities, the re.
velation of another "PonZi' in Chi;
cago, and the expose Of Florida wire
tapping clean-ups and other get-rich.
quick sucker" schemes.
Thirty-one firms Of stock brokers
have failed in Wall Street a'one dur
ing the last three months with total
losses approximating $25,OO0,0O0.
TO help the small investor steer
safely through the financial fog NEA
Service asked DIR. B. NJ. Anderson,
economist of the Chase National Bank
of New York, to write "The A. B. G.
,of Investment" an article containing
both warning and advice.
BY B. IN. ANDERSON, JR., PHI. D.,
Economist, Chase National Bank,
New York
The small "investor" who tries to
make Is per cent on his money is not
an investor. He is a speculator.
The agent, who solicits the funds of
small investors promising them re-
! turn Of 10, Is or 20 per cent or more
on sure" Investment is, consciously
O ,lncdhs hsdously, misrepresenting
facts.4SSure investments paying 10 per
cent or more are exceedingly unusual
and, when gsnuine,Maro almost never
offered to the general public.
1t isgOften well. worth while for the
man who can affofdsto lose money to-
take chances on Speculative new pro-
EMOTIONS. Industrial progress comes
Las new enterprises are started. But
even the best-planned new enterprises
DO not always make good, and the
small investor who cannot afford to
lose his money should not be called
upon to take these chances More
over, very high proportion of the
securities promising great returns
which are offered to the small inves-
tor by solicitors are issued by un-
trained and over-optimistic men, while
a very substantial number of them
are outright frauds.
Plenty Of Opportunities
The small investor need not lose
his money. He has plenty Of oppor-
tun1ties which combine virtually alb
solute safety with substantial income.
The bonds of the United States
government and the bonds of virtual
ly all our states and better munici-
palities may bo bought, OF course,
without hesitation. United States
government bonds can be bought in
denominations as small as $50 each.
There are, of course, savings banks
almost everywhere, we'll regulated and
dependable. There are local savings
and loan, or building and loan, asso-
Citations whose management and
the small investor
can investigate for himself.
In most communities, and particu-
larly in the small communities, the
small investor has opportunities TO-
buy real estate MORTGAGES where he
can personally inspect the properties
can personally inspect the
ClLlc 10 ClSt lduu WI AdSC ~ AANOoliodC-
ed at the borrowers expense by COM
potent experts), can personally see to
it that insurance premiums and taxes
on the property are paid, and that
proper repairs are made.
Railroad Bonds
There are, moreover, very large
number of railroad bonds and indus
trial bonds which bring a greater re-
turn than do the bonds 'of the United
States government, with practically
absolute safety. In choosing these
the small investor should consult his
local banker.
To a very large degree the bankers
Of the United States have come to-
realize that they have a public duty
in the matter Of advising small in