Evening star., 1926-05-02
BN l. 4. FLEMING.


"Before investing, investigate" This
war cry of the Better Business
Bureau is neither better nor worse
than Take it to your banker" "Ask
your banker" and various other old
time sayings, warning the ever
sullible to avoid the pitfalls that are
son every hand. seeking the dollars Of
the people and offering in return any
thing necessary, but without intent
'uf delivering the goods.
The Better Business Bureau claims
TO have saved investors cool million
dollars in Washington alone during
The past year through preventing
frauds. and its activities have been
such that its statement is entitled to
belief.
1t would be more interesting if the
actual loss to the people of the Dis
.lrict through the failure of Congress
to pass a blue sky" law to prevent
money of the Sullble. could be made
known.
Dollars lost might be used as a
positive argument in favor of the
building of the fence to keep the
hunters out of this section of the
country. Dollars saved are loud
speakers only when in the saving
bank earning 3 per cent.
Many Different Investments.
Scores of investments are offered to
the public constantly. There is no
way of guarding against frauds that
IS half as valuable as to make It a
rule never to buy from - stranger
coupled with an equally positive de-
termination to talk it over with your
banker before doing anything.
The banking fraternity of Washing
Ton has been given so much publicity
by the newspapers of this city, in
troduced SO frequently, that our
people should feel perfectly free to
seek advice, under the oft asserted
statement that it will be freely given.
Bank officials make a point of service
gratuitously, and this gives them the
chance to meet the investor and serve
if they have the suitable investment
10 offer.
Ever since Jacob swindled Esau out
of his birthright land has been consid-
cred one of the best tangible invest
ments. And vet land SwindlerS have
been even more numerous than stock
frauds.
Since gigantic combinations of capi-
tal have been necessary to enable the
sons of men to accomplish marvel
GUS enterprises pdI lICipottlOIl Iii OuSll
stocks and bonds has furnished the
popular way of raising the needed mil
lions.
Absolute Safety Desired.
Absolute safety is the one thing de-
sired by every investor-safety and
the return of his funds when desired,
with pay for the use of the same while
used.
This same absolute safety is the
desire of the trust companies and
banks of Washington having some
$3.50 900 900 of trust funds to care for,
SO that the benetiCiarieS under the
wills of teStatorS may receive their |
allotted proportion of the income of the
estates and that the latter may not
be in the least impaired through I'M
wise investments.
1t is one of the hardest positions in
which to place a man or a group of
men-that of manager or managers
of trust funds; they are taking no
chances, not the slightest, in their in
vestments, and yet there are times
when even the wiseSt find their most
carefully made purchases shrinking in
value.
AS q usual thing, when this condi- |
ton prevails the trust company must |
either write off the loss, liquidate the |
collateral or wait for the market to |
come back; and high-grade securities |
do have that ability in large |
degree.
But the small investor must exercise |
none the less caution in his selection |
Of securities or land.
Frequently the first investment leads |
the way to wealth and a competency, |
whereas a swindled person may adopt |
. he> S,Io j,,
There is one class of absolutely safe |
into which any man may |
put his money with the assurance of |
being able to get it out any minute
Of any business day and with which
one may rest serene and contented with |
a practical assurance of a small profit
in addition to a small rate Of interest.
That is Government bonds.
Low Interest Rate.
Because of this safety, these bonds
pay a low rate of interest. The
credit is AAA1. 1t pays
3a to 414 per cent interest and it's
bonds and notes sell at a premium.
It's securities are generally tax free
and are greatly sought after by rich
investors and banks, as well as trust |
They are just like that
much gold, only a little better.
You have to so TO a bank or in
vestment banker to buy govern
ments--no takers can supply them.
Municipal bonds or the funded |
debt of some city, county or State |
range next in value in the bond sec
ton, as these are also tax free, but |
the wisest banker is needed to ad- |
wise the purchase. the man who can !
give YOU the records of the cities,
counties and States in the matter of
debt, payments and other informa-
ton, which the banking fraternity
should have on hand. Do not buy
one of these bonds from any one
until your banker has given his
opinion on its worth.
Then comes the list of railroad
bonds on the New York Stock Ex-
change and the bonds listed on the
local Stock Exchange. These bonds
have some merit or they would not
no listed there. Get in the habit
of reading the financial column of
Your local paper and watch the
fluctuations in prices. become
acquainted with the New York
market through familiarity with it.
One good rule for the young in
Vestor is never, under any cir
cumstances, to buy anything in the
security line that is not listed on
The New York or Washington ex-
changes. Buying a stock or bond
that is not listed means that YOU
may not be able to dispose of ii
when you want your money back.
Why Bonds Are Profitable.
Bonds are evidences of debt, stocks
a partnership interest. If
L.. f,,I