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IN

"Quality Merchandise"
in Investments

N every city there is one place where the discriminating purchaser in-
evitably goes to obtain the best merchandise. In the same way there is
one place where the investor in real estate securities inevitably goes when
he wants the best the market has to offer.

The headquarters for "Quality Merchandise” in real estate
investments is indisputably S. W. STRAUS & CO.-the
House that is chiefly responsible for the wide popularity of
real estate bonds today.

This House, for years the leader in its field, is the one to which the dis-
criminating investor naturally turns for real estate mortgage bonds. This
is why S. W. STRAUS & CO. has the largest clientele and underwrites
the largest volume of any institution of its kind. Call at our offices in the
Straus Building, or write today for our booklet, "43 Years Without
Loss," which tells why Straus Bonds are the best real estate securities.
Ask for

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in the production of a machine-made article for the household, office, or general trade. To many minds the classification is a poor one, because it includes too much. Recognizing this fact is half the battle in investing in industrials. It is better to think of investing in an industry as an entity less comprehensive and more capable of analysis than in a grouping called industrials.

The real, good reason why suspicion of the soundness of industrials exists is interesting. Past experience shows that industrials are likely to fluctuate markedly with the fluctuations in business and trade. It takes but a superficial review of readily available statistical measures to prove that this is so. Further, there are the fluctuations within each industry, as, for example, the present depression in textiles. Further still, there is the fact that many industrial corporations, and among them some gigantic ones, are relatively new and young, and hence unstable. An additional consideration of importance is that the finger can be pointed to sensational collapses of apparently prosperous industrials whose misfortunes have prejudiced investors against the entire class. Compared with a public utility or with gas and electric light stocks, many industrials sail relatively stormy

seas.

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To how great an extent the prosperity of industrials depends on factors beyond the immediate control of the best management is not always realized. Sudden changes in women's fashions reduce the demand for cloth, build up the silkcking industry, create a new industry imitation silks. A war across the ean brings wealth to an obscure facwhich hitherto had merely "pegged g." Radio and automobiles carry their growth success to endless ers of accessories, not to speak of ufacturers of batteries and parts, per mines, plate-glass mills, and rubfactories. Examples can be multid. The kaleidoscope is fascinating, ewhat bewildering; it calls for intense dy on the part of the investor. Yet, though such factors as these ect industrials, do they not also, in eater or less degree, affect all business? Examining industrials more minutely, can see that, after all, and in the long n here as in all fields of endeavor, the reful builder of business, the couraeous yet conservative financial mind, is at work forming in America a structure of industries which is yearly becoming more stable, more adjustable to the winds of fortune, safer for the investor. In an industrial age industries are a basic nersity. Self-preservation demands the Lercise of the very qualities whose lack

THE DUAL SATISFACTION of SMITH BONDS

EN and women who

M put their money

into Smith Bonds experience a dual satisfaction in owning these time-tested investments.

NOW
PAYING

7%

In the first place, you have the comfortable feeling of financial security - the knowledge that your money is safe. Every Smith Bond is a First Mortgage Bond, strongly secured by improved, income-producing city property, and protected by the safeguards which have resulted in our record of no loss to any investor in 52 years. This feeling of financial security is increased by the knowledge that the longer you keep a Smith Bond, the stronger it gets. Monthly payments toward the annual reduction of the mortgage constantly increase the margin of security for investors.

In addition to the satisfaction of knowing that your money is safe, you have the satisfaction of knowing that, without risk or worry, your are realizing the full earning power of your money, receiving a substantial income, regularly and promptly paid. It is the policy of The F. H. Smith Company always to pay the highest rate of interest consistent with our standards of safety-standards which have resulted, for more than half

a century, in the prompt payment of every cent of principal and interest to every purchaser of our first mortgage investments. Current offerings of Smith Bonds pay 7%. By investing now, you can obtain this return for any period, from 2 years to 10 years. You may invest in denominations of $100, $500 or $1,000, outright or under our Investment Savings Plan.

This latter plan gives you 10 months, after an initial payment of 10%, to complete your purchase. You may make your payments monthly, or at irregular intervals, as suits your convenience. Every payment earns the full rate of bond

interest.

Send your name and address today, on the form below, for our two booklets, "Fifty-two Years of Proven Safety" and "How to Build an Independent Income," The first of these booklets tells about the time-tested safety features which have made Smith Bonds the choice of discriminating investors in 48 States and 30 foreign lands. The second booklet explains our Investment Savings Plan, and shows the results you can accomplish by systematic investment at 7%.

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In writing to the above advertiser, please mention The Outlook

6-A

is largely responsible for past failures. The scientific man, the statistician, the business analyzer, the advertising counsel, bring to industry special abilities which, together with scientific management of production, are discovering and solving difficulties that a decade ago seemed impossible of eradication.

What are the requirements of a "really safe" industrial? In short space it is hard to make adequate answer to this perfectly proper question, but some idea can be given.

In the first place, there must be competent management, efficient plant, and sound financial structure. These are bare essentials, and to say how they are to be attained, and how to judge them, is to repeat the fundamentals of all business. In addition, there must be a distributing or sales mechanism which will seek and hold markets. In these days it

is not enough to make the best mousetraps in the world; you must force the knowledge that they are the best upon the world. In addition, also, there must be fullest realization on the part of productive and distributive officers of the whole industry and of its position not only in the industry but of the industry's position in the entire scheme of business. In other words, in these days of world. markets and world competition, which tariffs can only slightly affect-with striking exceptions-there is need for a degree of constant research and ability to interpret and apply research's findings.

One of the largest advertising agencies in the country had this illuminating experience, apropos here: The directors of a certain corporation decided that they must advertise, and appropriated the sum of a quarter of a million dollars to

do it. The agency said, "We must make a study of your product, your sales problem, of your industry." After a month the agency reported that the directors had best invest their advertising appropriation in almost anything except advertising. What was needed was a sales force, not newspaper and magazine advertising. The reason why is too long to tell here, but the point is that but for their good sense in choosing an honest agency the lack of judgment on the part of the management would have wasted valuable dollars. Not only good brains but many brains and alert brains are required by industry to-day.

In this article space forbids anything like a detailed study of industrial investments. In "Investment: A New Profession," Henry S. Sturgis gives the results 'The Macmillan Company, New York, 1924.

THE CORN EXCHANGE BANK

WILLIAM AND BEAVER STREETS
and Branches located throughout Greater New York

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Our listed resources, enumerated in this statement, do not and can not include those assets of friendliness and helpfulness which this bank has in the personnel of its board of directors, its officers and employes. These are assets which pay dividends to our patrons in service and satisfaction.

The Corn Exchange Bank can act as your Executor or Trustee, issue
Letters of Credit, Travelers' Checks and Drafts on Foreign Countries, rent
you a Safe Deposit Box, and can provide every Banking and Trust Service.

In writing to the above advertiser, please mention The Outlook

The World

Takes Stoves from Detroit

Detroit is first in world pro

duction in 29 industries, including stoves. Detroit's wide range of large industries has attracted thousands of investors who are participating in its rapid, substantial growth. Here is your opportunity for safe, profitable investment in United First Mortgage Bonds, secured by first mortgages on high grade Detroit apartments, homes and office buildings.

Write for complete listings of investments open to you UNITED STATES MORTGAGE BOND COMPANY LIMITED Howard C. Wade, President

326 U.S. Mortgage Bond Bldg., Detroit, Mich. Capital $1,000,000 Resources more than $10,000,000

Or you can buy "United Bonds" doubly safe guarded-guaranteed as to principal and interest. Ask us about United guaranteed bonds.

12%

UNITED
BONDS

Facts for Investors

THE OUTLOOK Financial Service Department is at the disposal of all Outlook readers at the nominal charge of $1 per inquiry. It is a fact-finding and reporting information service which aims to help the investor, small or large, solve his own problems We are serving hundreds. May we serve you?

of a careful study of investments made in 1921, and a list of companies whose securities, or some of them, were at that time considered investments was compiled. The following industrial bonds met the exacting tests set up: General Electric debentures, United States Steel sinking fund 5s, Cuban American Sugar 8s, Standard Oil of New York 7s, Standard Oil of Southern California debentures, and Western Electric 7s. The industrial stocks were common, with the exception of Allied Chemical and Dye preferred, and these were the companies: General Electric, Woolworth, Standard Oil of New Jersey, New York, California, Kentucky; Royal Dutch, Electric Storage Battery, Owens Bottle, American Locomotive, American Car and Foundry, American Radiator, United States Steel, Otis Elevator, and General Motors (debentures).

This enumeration, arrived at after very painstaking probing of the records of the corporations, is not published here as a hint for investors to-day. I print it to warrant repeating the point that there is nothing inherently different in a stock or bond because it is an industrial from what it would be if the issuing company were a public utility or a railroad. Management, financial structure, and earning power are the central considerations.

In another book, "Industrial Ownership," by Robert Brookings, there is a significant table which shows that the average earnings of twenty selected industrials were not greatly below that of National banks. The summary covers the earnings of the years 1919-23, and the ratio of net earnings to capitalization was worked out accurately. In the case of banks, for reasons which are more or less obvious, the ratio is that of net earnings to capital, surplus, and undivided profits. Part of the table follows:

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GUARANTEED INVESTMENTS 6

[graphic]

1ST

NATIONAL
COMPANY

Legal Investments for National Banks

Excellent Investments
for Everyone; Yield 6%

FIRST

National 6% Certificates conform to United States Government restrictions for National Bank investments, and also provide an ideal form of investment for State Banks, Trust Companies, and other financial institutions. In addition, they meet the requirements of individual investors who desire a short-term first mortgage security.

Unconditional Guarantee: First National Certificates are the direct obligation of The First National Company. Our capital resources of $650,000 constitute a guarantee fund to insure the prompt payment of your principal and interest.

Trust Company Trustee: They are secured by real estate first mortgages, executed by responsible borrowers, and deposited with a Trust Company as trustee.

Ample Security: The amount of Certificates issued represents less than 55% of the value of independently appraised real estate pledged as security.

Flexible Maturities: You may invest $500, $600, $700, and so on upward, and name the exact maturity date, from a minimum of four months to a maximum of five years.

In addition to First National Certificates, we also offer, with our guarantee, registered certificates in $100 multiples paying 6% for I year, and coupon bonds in $500 and $1,000 denominations paying 6% for 4 years.

Write today for booklet No. 11

THE FIRST NATIONAL CO.

KEYSER BUILDING., BALTIMORE, MD. CAPITAL RESOURCES $650,000

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ization

U. S. Steel Corp.....
Bethlehem Steel Corp.......
Republic Iron & Steel Co.
National Lead Co......
Amer. Car & Foundry Co.
Baldwin Locomotive W'ks
Westinghouse Electric &
Mfg. Co.
Worthington Pump & Ma-
chinery Corp.
Internat. Harvester Co.....
Amer. Agricul. Chem. Co.
Swift & Co.
Amer. Sugar Refining Co.
Corn Products Refin'g Co.
American Tobacco Co.......
American Woolen Co.........
Central Leather Co...........
Cluett, Peabody & Co.......

7.23

21,405,800

7.22

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Write

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Endicott Johnson Corp..... U. S. Rubber Co... Studebaker Corp.

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The Outlook Financial
Service Department

THE OUTLOOK

.20 East 16th Street

to

Invest in Florida at 8%
$100, $500 and $1,000 Bonds
Partial Payments Arranged

TRUST COMPANY OF FLORIDA

Paid-in Capital and Surplus $500,000

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I want to know Florida's five reasons for 8% and safety. Name...

All National Banks........ 225,142,600

The conclusion to be drawn from these

In writing to the above advertisers, please mention The Outlook

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Important to Teachers!, somewhat scattering remarks is that he

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It is one of the great fundamentals upon which social organization and social progress absolutely depend. A misunderstanding of this one fundamental on the part of any large proportion of any nation might spell a disaster of first magnitude!

There are other fundamentals. For instance, there is the fact that without co-operation there can be no social organization at all. Has law and order anything to do with this co-operation? Does it make personal liberty impossible? Or possible?

There are still other fundamentals. There is the historic fundamental that militarism spells national suicide, and that commerce spells strength, civilization, and culture. There is the fundamental that humans seem to require a reward for exercising their best capacities.

Are these important to know about? Did you ever hear of a school making such matters a definite part of their study? Yet these are essentials every efficient citizen should know!

Great public leaders and great educators are demanding that schools teach the highly important fundamentals of civics and of social organization. To all who have this great matter at heart this announcement will bring a very keen interest.

Personal Liberty and Other

Social Fundamentals

Charles K. Taylor, M.A., Director of Educational Research at Carteret Academy, N. J., after experimenting for a number of years to find which of these vital concepts can be brought most strongly before Young America, has evolved a novel method of instruction by means of which students are encouraged to develop these concepts through their own thinking, and through class discussion. The method is presented in 19 lessons entitled "Personal Liberty and Other Social Fundamentals" strongly bound in boards and printed in large clear type. The subject matter as well as the method will be a revelation to school folk and all those interested in educational methods.

J. Madison Gathany, Instructor in Social Science at the High School of East Orange, New Jersey, says: I have just finished reading your little volume entitled "Personal Liberty and Other Social Fundamentals." It is a fine piece of educational work. In fact, the book fascinates me, and I am of the opinion that its value will come to be recognized by educators as unusually great. By cogent and skillful questioning you compel the reader to see open and unhindered not only the foundations upon which our whole social structure rests, but also the conditions upon which future development and progress must be made.

It is my sincere wish that your book might come into the hands of countless young American citizens. For this is about the best thing that I can wish them for their own sake and that of the United States of America.

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who has sedulously avoided the industrials as potential investments has made a grave error of judgment. The properly selected industrial is a true investment. It is open to the hazards of depression, but probably not more so than any

I

other type of investment except the straight real estate mortgage. It offers reasonable promise of appreciation. Its tendency-the tendency of the industrials as a class--is toward rather than away from stability. A well-diversified, well-chosen industrial list is hard to beat.

Roses and Sweet Peas
By BILL ADAMS

DON'T know what to write about.
One hesitates to write, half afraid to

put one's thought on paper for the world

to see. One looks backward along life with wonder, and, looking forward, wonders the more.

I've been thinking of pictures I have seen along life's gallery, remembering the words and the faces of people. Such a many people!

It is sunset time. I recall a sunset a

dozen years or so ago. I was working in an orange packing-house, taking the fruit from the wagons as the teamsters unloaded it. It was mid-April, and the day had been showery.

Behind me the grader women sat at their grading, sorting the fruit that rolled by on the canvas belts. Beyond the graders threescore packers with flying fingers wrapped the golden fruit. Truckers and rustlers hurried to and fro. The voices of the packers rose continually, calling "Box!" bidding the rustlers take their full-packed boxes. A switch engine clanked along the rails upon the other side of the packing-house. All was bustle and hurry, for it was close to quitting time. Rows of electric lights shone through the dusty haze above the workers. Machinery whirred and rattled. Eastward, opposite the doorway in which I worked, great tumbled ruddy clouds clung to the mountain ridges. Here and there amid the clouds a pink snow peak arose. The canyons were darkling.

But for one lone late teamster, who urged his straining team toward my door, the wet street was deserted. His horses pulled with their heads low, muscles on flank and shoulder rigid, dry sweat of a long day's labor white about their collar-pads.

Without a word to me, the teamster commenced to lift the orchard boxes from his wagon-bed, stacking them on the floor before my truck. There was no moist sweat upon his face. The long-dry furrows of his brow were dust streaked. He grunted now and then, and winked to me.

Between his lips he held a bright-red rose. I knew him well; a happy-golucky, care-free, cussing sort of man-a common type of common laborer.

When all his boxes were unloaded, while, eager for their barn and barley, his team stirred restless feet, he stretched

his arms and looked up to my face. He took the red rose from between his lips and held it toward me.

"Jesus!" said he; "ain't that a pretty rose?"

I think that deep within the heart of all of us there dwells the bud of hunger for pure beauty.

His "Jesus" was, to me, not blasphemy, but prayer.

Once there came to my doorstep an old and beery tramp. He drank a cup of coffee and grew talkative, seated beside me on the kitchen step.

"Them sweet peas ain't doin' good," said he, nodding to my weak row of poorly growing peas.

I said nothing.

"I'd used to dig me two little trenches, might be six inches deep, about when the first cool nights was comin' after summer," he said. "Afore I'd dig 'em I'd fertilize the dirt. I'd poke a lot o' little holes in the bottom o' the trenches and drop a pea down each of 'em. See?" I said that I saw.

"Jest so soon as them peas beginned to shew I'd sift a little o' the loose dirt from off the top o' the trench down on 'em, and w'en they come up again I'd sift some more. I'd keep asiftin' and asiftin' till the trenches was most level. Then I'd quit an' leave the peas grow out. We sure did raise fine sweet peas." I said nothing.

"God!" said he, and wiped a brown hand across his fishy eyes.

I said nothing.

"I'd ought not to be like this," he said. "It's all my fault. I'm glad if she don't know."

I said nothing.

"We had a bit of a home one time, me an' my wife. She was that fond o' garden. She sure did like sweet peas."

I fetched him another cup of coffee. "When she took sick it all wentoperations an' hospital, doctor bills and such. When she was gone, I didn't have nothing. We never had no kids.”

I held my hand out to him, and, taking it, he said:

"W'en you puts in sweet peas in fall, do like I says. Fix them trenches for

'em. They'll do fine."

I hope his wife can see the blossoms.

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