The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1924-12-09
WOULD PROTECT
BOND BUYERS
Investment Market Broad
ems, New Investors Grow

HARspS PARK. Mas Dec. -
The ability gt iaH usHHlulrs.. ...-.. rI
% absorb q tremendous and almost
continuous stream o. urw issues has
puzzled many students OF finance
When questioned To-Day regarding
this unusual condition. Roger W
nsta0n Fayr at least ono E0ai rcl.
son Tor thiH apparently Unsuitable ap.
petite for bonds and moro bonds.
we arr rapidly becoming o. ma,
ton u Investors" sayH the s'H'H
ticiau Sew bond issues arr very
largely put out in 500 and 600 al
well aa largrr denominations iu order
that they may have a moro wide.
spread appeal
''Tcafa HEo Investment by tho mas.
sr4 vaH carried on through rtla-
lively indirect route 4 number OF
investors put small sums into Tho
savings bank Tho bank then IN.
vested these combined funds In bonds
This fBme procedure ID. 81 ruurr.
going on today.
More and more. however. the IN.
creased attention given 20 tho small
investor is resulting IN direct sales
and tho Joy Of clipping coupons is
today by no means confined TO the
man whose large income puts him ia
tho surtHy group.
The situation brought about By
war condition must b. given credit
for supplying tho greatest impetus
TO bond buying among the lower
Halariod and lahorinK classes For
tens. II NOS hundreds uf Thousands %,
residents In thr United States Lib.
crty bonds constituted tho frFt IN,
ycstmcnt purchased
AN interesting experiment has re-.
Gently been lnauEirated In ono Of tho
largest cities Of tho country. 4 store
for bonds. similar 10 store Tor pro.
visions. dry goods. furniture or any
other product, has been opened The
man on the street IL invited. through
advertisements and window displays.
TO como tn and buy any bond Of any
denomination that he may desire
The salesman behind the counter
is prepared 20 show his wares and
explain tho worth Of his offering.
Naturally. tho Eoodr on display must
be relatively limited. but tho cusio.
MGR can express his desires for later
delivery aa the store Is able to iii
his order
such developments, coupled with
tho plan Of customer ownership SO
largely used by utility companies IT.
connection with preferred stock OF.
fcrinEs, cannot but hnyr a salutary
influence on investments as we'll as
on industry
THE man with 500 savings
deposit inevitably owns a 500
bond in a railroad. utility or In.
dustrial concern or, more exact.
Is, has fractional interest In
hundreds Of such companies.
"rho path Of the small investor ia
not wholly FREQ from thorns. oh.
vlously thcro arc bad, MS we'll az good
bonds. Attempt to get moro than
n conservative yield. now around $50
per cent 10 per cent, inevitably
means acceptance Of risks II is folly
for tho sake OF per cent or 2 per
cent extra returns to icopnrdlzo safe
~ Of principal It is not in bonds,
however, TO any such degree as in
stocks that the greatest danger faces
tho buyer.
"Flybynight promoters nrc al
ways on tho trail OF tho unwury.
"So.called Blue Sky Laws exist
in many states and unqucstlonnbly
have their favorable influence. on
tho other hand, they do not, ms n
class. 30 far enough nor have sur.
ficient teeth In them
Moreover. this is really "A mnttor
for Fedornl action While perhaps
locally beneficial, II Is Of no great
advantage 20 tho people Of tho United
states as a whole that the fraudulent
promoter, kicked out Of ono state,
cun hop over the border and be I'm.
disturbed In peddlng his certificates
in adjoining territory. @