The Birmingham age-herald., 1924-12-14
Men And Markets
 D., D D D
By ?. F. B.

Tn shearing season is upon us. The gullable public is about to be separated from several hundred million hard earned dollars in the name of invest ment." Strictly speaking, the shearing season is always with us. The bubble of something for nothing leads its stream of victims into the hands of crooked promoters who make short work of fleecing them. But we have had bull market for these weeks since election. Millions of dollars have been made in the advance of security prices, the stories of 2,000,000 share days have held the front pages of the papers, and the vast army of American citizens, little versed in finance, are about to take their savings in their hands and go looking for the sure thing that will make them independent for life, will buy all the luxuries they have so long deserved but could not afford, will solve all problems with 1000 per cent divi- dends, and all that sort of thing. Nor will they have to look far. The blue sky artist senses the situation and he will be ready with the most alluring promises and the most decorative cer- tificates that can be produced by a crooked mind and the engraver's art Thousands of innocent people will lose money they can ill afford to lose. Hun dreds that know better will pay for their folly. Scores of confidence men will reap the golden harvest, will retire with the spells, and will invent new bait for the man who insists on trying to beat one of the most fundamental laws in nature-you cannot get something for nothing
 Speaking of speculations, it should be enough to know that 80 per cent of the new businesses started go through at least one reorganization. This means that in four cases out of five the people who buy the original stock lose what they put into it. The chances of get ting a dividend or return on the money invested in projects not already operat- ing on a paying basis is even less. New businesses must be financed of course, but the necessary risk of the promotion should be carried by those who can afford to lose. The rich man, in other words should buy the promotion stocks. He does not do it as a rule because he knows how small chance he has. h. stead the small investor who has but a few hundred or few thousand at most buys in and almost invariably loses. Even in the case of a legitimate venture, honestly managed, the chances are four to one against you. You might not risk so much as dollar where you knew the odds were so overwhelmingly against you. Why will you part with hundreds and thousands of dollars for promotion stocks?
 A railroad merger bill, sponsored by Representative Winslow, has the con- sideration of congress. It specifically endorses the policy of consolidation as desirable, then suggests voluntary merg- CTS on the part of the roads. If these have not been affected to a satisfactory degree at the end of five years, the bill suggests compulsory consolidation. With the blessing of the government and the urge for more economy of oper- ation, the roads should certainly be able to put through the necessary changes within the five years suggested.
 Vienna landlords have come forward with novel suggestion. The offer to take over the burden of repaying the League of Nations's $130,000,000 loan by mortgaging, if the government will re- peal the present law which restricts rentals. They claim that the present limits will not allow sufficient return The government considers the proposal The general public, now protected against sharp increases in rentals is considerably agitated.
 The nimble dollar is setting up new records. Three-quarters of a million of them will change hands within week on government financing alone. One hundred millions was paid to France on the French government loan; England pays us $68, 500, 900 in interest and $23,- O0O,0o0 on the principal of their debt to us. The United States government in turn is paying $4oO,ooo,oOO in cash or it's equivalent to retire a bond issue coming due. and is receiving $200,000,00C in subscriptions on a new government loan. The fact that these huge transac- tions are being handled without so much as ripple in the money markets testifies eloquently to the fundamental strength of our financial situation.