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good time and had talked to many of the soldiers—which was the truth; but the head man was not accustomed to dealing with rounders, and never guessed. Neither did little MacGee. But he was much puzzled about my good fortune, and one fine Sunday asked if he might come with me, suggesting that we join forces.

So we went to the company streets, and looked into a tent, and were at once bidden to enter and make ourselves at home; for soldiers are a long-suffering and very friendly people.

"My side-kick," said I, “is going to have a bit of a Bible class.”

Little MacGee looked at me meaningly, for he had expected me to commence with the printed matter. But I passed the buck.

"Sail in, Mac," said I. "Tell us about it.”

For half an hour little MacGee told us about one Paul. You will find him in the Acts of the Apostles. He lived a long time ago, and in his day was something of a rounder.

When, happy and bright-eyed, Little MacGee stopped, there was silence. The soldiers were lolling on their cots.

"Xow, Mac," said I, "you go rustle us some ice-cream. We are all a bit dry," and, somewhat taken aback, little Mac went.

A soldier rose from his cot and stretched himself.

“Bill,” said he, “who in hell is this

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guy Paul?”

Death commenced his harvest in the company streets. Flu broke out. The hospital was overcrowded, the staff too small. Often the band passed cemeteryward, playing solemn music.

Little MacGee was grown very silent.

One day he asked me if I could lend him a razor. I had two, and did so. By his manner I knew that he did not wish to be asked what the razor was for.

A few days later I passed a ward where many soldiers lay suffering, their small comforts ill cared for. I stopped to look in. Some one paused behind me, and, turning, I saw the one who had asked about Paul. A little man with his back to us was gently shaving the face of a soldier. He straightened the sheets, shook the pillow, and passed on to the next stubble-faced lad. What more uncomfortable than bristles when one is on a sick-bed?

The soldier behind me spoke.

“Bill, that little guy is sure some little square guy!”

Little MacGee had dispensed with printed matter.

For complete information relative to this finest service
communicate with any ticket or tourist agent or with

one of the United States or foreign offices of the



604 Fifth Avenue, New York City

177 State Street, Boston, Mass. 112 West Adams Street, Chicago, Ill.

101 Bourse Building, Philadelphia, Pa. 626 So. Spring Street, Los Angeles, Calif. Hugh Mackenzie, G. P. A., Robert Dollar Bldg.

The colorful beauty of Hawaii. The keen
progressiveness of Japan. Age-old China.
The charm and mysticism of India.

What weeks of unceasing interest these
lands promise! All are worthy of a visit,
even though it cannot be long. All reward
wanderers with unforgettable memories.

There are other lands, too, which are
just as alluring. The Philippines, Malaya,
Java, Australia, Ceylon, India and Egypt
have all inspired famous story-tellers to set
down their weird tales.

But the beauty, the color, the people and
the scenes are only a part of your adven-

heavy silks and brocades, batiks and rare
furniture are to be bargained for and for-
ever enjoyed.

The entire trip is an unforgettable memory. And you go in comfort such as you have always thought you could find in this country and Europe alone.

Magnificent Liners Every Saturday a palatial President Liner departs from San Francisco for the Orient and Round the World. It is spacious, luxurious and wonderfully served.

It calls at Hawaii, Japan, China, the Philippines, Malaya, Ceylon, India, Egypt, Italy, France, Boston, New York, Havana, Panama and Los Angeles.

In addition, there is a fortnightly service from Boston and New York via Havana, the Panama Canal, California, Honolulu, the Orient and Round the World.


There are quaint shops in which you find priceless treasures.

Jewels and precious stones, lovely filigrees, of silver and gold, choice ivories,

San Francisco, California

in writing to the above advertiser, please mention The Outlook

Financial Department


Conducted by WILLIAM LEAVITT STODDARD The Financial Department is prepared to furnish information regarding standard investment securities, but cannot undertake to advise the purchase of any specific security. It will give to inquirers facts of record or information resulting from expert investigation, and a nominal charge of one dollar per inquiry will be made for this special service. The Financial Editor regrets that he cannot undertake the discussion of more than five issues of stocks or bonds in reply to any one inquirer. All letters should be addressed to THE OUTLOOK FINANCIAL DEPARTMENT, 120 East 16th Street, New York, N. Y.


Investors everywhere have asked these

questions Can YOU answer them?

The Price of Money-What It Means



money to invest. You know that good bonds are a desirable form of investment. But there are many practical questions concerning them which, sooner or later in your experience, will demand an answer. The most common of such

questions—and perhaps the most important- have been collected by us through years of contact with a good many thousands of investors, and published in booklet form, together with their answers. These are stated in a simple and nontechnical manner.

In the latter part of the booklet you will find an explanation of financial terms commonly used in the description of bonds.

This booklet, while written for the guidance of inexperienced investors, contains bond information of practical value to the experienced investor as well.

ONEY, common (or uncom- And the opposite is true under opposite

mon) thing that it is, is some- conditions.

thing of a mystery to many of The so-called money market, in which While the average person under- the law of supply and demand does its stands the results, if not the causes, of work, comprises the whole world and is the fluctuations in the purchasing power affected by multitudinous conditions. In of money, he is almost invariably at a the narrower sense, the money market loss when he hears mention of the price consists of lenders, as banks, discount of money" or money rates. Yet money houses, brokers; borrowers, whether comrates are fundamental to an understand- mercial, speculative, agricultural, or ining of investments, and particularly of dustrial; and intermediaries, as note and investments in bonds.

money brokers and stock exchange broSometimes money is said to be cheap kers. or low; sometimes it is high. From day Because of the varied uses to which to day it fluctuates in greater or less de- money is put there are various kinds of gree. From year to year it swings in loans, and hence different sets of rates or larger curves. The movements of money prices for money. The most familiar are closely watched and are reported in kind of loan to the average man is the the press of the world. The change of a time loan for a specified number of fraction of a per cent in the Bank of months, usually with the understanding England's discount rate may be the lead- that it can be renewed. The time loan ing event of the day. To the practical is secured by sound, salable collateral. business man, the investor, the banker, The price of such money is close to the money rates are studied and made the legal rate; sometimes, when money is basis of planning and of action.

plentiful, below it. Then there are call In speaking of money rates we do not loans on stock exchange collateral. These refer to the legal rate for money. This are the loans which finance stock-market is the maximum interest rate allowed by trading; they are termed "call” because statute, and interest charged in excess of they may be called or terminated on a the legal rate is called usury. Inciden- few hours' notice. Call-loan rates are tally, it is interesting to note that, while lower than time-loan rates—as a usual 6 per cent is the legal rate in practically thing. The third largest class of loans all the Northern States, the rates in the are those made by manufacturers and South are 7 and 8, which fact accounts merchants on their notes. These are defor the higher yield of certain Southern fined as "commercial paper” loans, and bonds.

the rates vary in accordance with the The rate or price of money—that is standing of the firm and the condition of interest-has been defined as "rental the money market. Less important to payment upon money; a charge made to the average man, but of vast importance the borrower by the lender for the use in the financial world, are the Federal of money.” This definition leads us to Reserve discounts and bankers' acceptsee why it is that rates can fluctuate just ances. as prices of or rates for—other com- Between the course of the money marmodities and services vary up and down. ket and speculation and business there is At the bottom of these fluctuations lies a well-defined and easily recognized relathe law of supply and demand. When tionship. “For example," we read in a there is a sharp need for renting money, study made by the Harvard Committee the natural tendency is for the rental to on Economic Research, "with declining rise. If the demand comes at a time security prices, declining commodity when supply is plentiful, the rise will be prices, and declining interest rates, there slight and gradual: if it comes when is adequate evidence that business is money is scarce, it will be rapid and high. passing through phase one, depression, of

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In writing to the above advertiser, please mention The Outlook





the economic cycle. In accordance with the sequence theory speculation may be expected to move up first, followed several months later by the recovery of business, and finally by the beginning of a major forward movement of money, which, of its own influence, will eventually bring to an end first the advance in security prices, and second the upswing of business, and we are again back in phase one, depression."

It is not the object of these few paragraphs to do more than suggest some of the more striking and generally admitted facts about money, its price, and the significance of money price changes. In spite of a vast amount of earnest study, the forecasting of business changes is a science that is still an infant. Contrary to theory and observed event, bond prices began to rise in 1920, although money rates were also rising. We do not know of any major exception to the other rule, namely, that stock speculation stops with rising money rates, and those who are speculatively inclined will do well to ponder this point.

The mystery about money is not such a deep mystery, after all. Any welledited financial department of a daily paper furnishes facts and enlightening comment, so that the reader can soon become fairly familiar with the main phenomena of money price changes and their profound effect on business and investing.

W. L. S.

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You are


N unusually excellent practical dis

cussion of investments, to which we commend readers of this department, is the series of articles now being published in “Barron's” under the title “Investing $100,000 for a Widow." The articles are prize-winners in a contest which has attracted considerable attention. The winner of the first prize assumed the case of a widow with two children, and so arranged the investments as to bring in a larger income during the educational period.

We have space merely for the summary:

“We have invested $58,000 (about sixty per cent) in bonds, being $5,000 par value of thirteen issues

-one government, two public utilities, two industrial, and eight railroads. Maturities are distributed fairly evenly from 1929 to 1951, four short-term issues and nine long. These afford a present annual income of $2,675, or 4.6 per cent on the investment, and after 1937 this is increased by approximately $500 per annum through the maturity of bonds purchased at a discount. The average yield to maturity of

She wish for a substantial ment will produce a proportionate result. independent income-an

One reason for the rapid growth of your income apart from your personal savings under our plan is that you realearnings-doubtless has been in ize the full earning power of your money your mind many times. But have immediately. Every payment that you you ever studied, in black and make-$10, $20, $50, or more-earns 7%

from the day it is received by us. white, just how large an income

not required to make regular monthly you could create with the money payments if it suits you better to pay at you save and invest?

irregular intervals. Our booklet, “How to Build an Inde- After an initial payment of 10% (more if pendent Income," enables you to look



have ten months to comforward five, ten, fifteen years, and more, plete your purchase of a $100, $500 or and see the results you can accomplish $1,000 Smith Bond on any terms conby putting your money

venient to you.


may into 7% Smith Bonds,

use the plan to buy a under our Investment SMITH BONDS single bond in 10 months, Savings Plan.


or one bond after anIt will show you, for ex


other from year to year. ample, that by investing

Send your name and adSmith Bonds are First Mortgage $50 a month in 7 Smith

dress today, on the form Bonds, strongly secured by imBonds, and reinvesting proved, income-producing city

below, for our “Indeyour interest at 7%, you

property, and protected by the pendent Income” bookwill have, in ten years,

safeguards that have resulted in let. We also will send

our record of no loss to any in$8,657.10. This amount, vestor in 52 years.

you our booklet, "Fiftyinvested at 7%, will give

two Years of Proven Current offerings will pay you you a monthly income of 7% for any period from 2 to 10

Safety," which explains more than $50; that is, a years. You may buy these bonds the time-tested safety monthly income greater in any amount, in $100, $500 and

features that have made $1,000 denominations, outright than your monthly in

Smith Bonds the choice or under our Investment Savvestment. A larger or ings Plan.

of investors in 48 States smaller monthly invest

and 30 foreign lands.

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In writing to the above advertiser, please mention The Outlook


Recommended by a TRUST COMPANY

with resources of Fifty Million Dollars Secured by First Mortgages

Guaranteed by a SURETY COMPANY
with resources of Forty Million Dollars

that are:

From Inquiring


these bonds is 4.9 per cent. The stocks comprise eleven issues, three rails, four public utilities, and four industrials. The stock investment of $39,000 (about forty per cent of the total) is divided about evenly between the eleven selections. The annual income from this investment is $2,190, or a yield of 5.48 per cent. The total investment in both bonds and stocks is thus in round figures $97,000, which affords an annual income to start with of $4,865, and this is increased by about $500 per year after twelve years.

Prices of both bonds and stocks were The Bond DEPARTMENT OF THE BALTIMORE Trust COMPANY offers several new issues of 6% Real Estate Bonds from which to make a

taken as of July 3, 1925. An eighth selection for

November funds. Each issue is secured by First

point was added to the bond prices to Mortgages

cover commissions and the stocks were 1. Approved as to investment stand

taken at enough over the average prices Every investment made in these bonds ard by The Baltimore Trust Com- is triply secured-first, by the ample cap

for the day to allow for commissions. pany, which has resources of more ital and surplus of a well-established than $50,000,000.

Accrued interest was not figured for the Mortgage Company; second, by First 2. Guaranteed as to principal and Mortgages made for not more than 50%

bonds, but $3,000 was left uninvested. interest, except as to title, by the of the value of leasehold property and not

which might be used for this and for a United States Fidelity & Guaranty more than 60% of the value of fee simple

bank account.”
Company, which has resources of property; third, by the guarantee of
more than $40,000,000.

principal, interest and title on each 3. Guaranteed as to title by the New mortgage.

York Title & Mortgage Company,
which has resources of more than

Each bond is certified by The Baltimore

or by some other Title Trust Company as Trustee, or by some
Company approved by The Balti- other Bank or Trust Company approved
more Trust Company and the United by The Baltimore Trust Company and
States Fidelity & Guaranty Com- the United States Fidelity & Guaranty

OME one out in South Dakota has

asked us about the First Mortgage Consult Your Own Bank or Banker

7 Per Cent Bonds of the United Carbon $500 and $1,000 bonds of any available issue or maturity (1 year to 10 years) are sold

Company, an issue of $2,500,000 of at par and accrued interest to yield 6%. All issues provide for the refund of the securities tax of any state up to 4% mills in any one year. Orders for these bonds may

which is now being offered, dated April be placed with your own Bank or Banker; or with The Baltimore Company, Inc.,

1, due 1931. 52 Cedar Street, New York, N.Y.; or sent to the Main Office of The BALTIMORE

Everything about the issue seems to Trust COMPANY, 25 East BALTIMORE Street, BALTIMORE, MD.

be in excellent shape. But there is a Write for Booklet No. 17

“but” which investors would do well to keep in mind in this and in similar cases.

A high return is offered. The com

pany is a new one, formed by a consolThe Largest Trust Company in the South Atlantic States

idation of several existing concerns. The offering complete banking, trust and investment services

trustee under this issue is one of the best

in the country--the Guaranty Trust CAPITAL RESOURCES


Company of New York, but the trustee $7,000,000


cannot control the fortunes of the com50,000 DEPOSITORS

pany except to a small extent. The company, being new, does not offer to investors a seasoned and conservative investment. In other words, there is here an element of risk not to be found in many issues listed on the stock exchanges

or otherwise sold to the public. BETTER HELP

ECENTLY a reader submitted to us for You can secure it through the “Help Wanted” section of

review a list of some seventeen The Outlook. The rate is low and you will be delighted

stocks and bonds, worth at par about

$20,000, and requested an analysis. To with the results.

inform others about the service we at10c a word ; 25c for the use of a box number if you wish

tempt to render in such cases, here is our

first letter to him: replies forwarded from The Outlook office.

"Your list contains none of a specula

tive nature, and the great majority are Department of Classified Advertising

clearly of an investment type. As comTHE OUTLOOK 120 East 16th Street, New York plete information as is desirable is not

available to us about the stock of John

B. Steston, but I know nothing against In writing to the above advertisers, please mention The Outlook





Is your money serving

as well as earning?


opportunity. Your money is not only bringing you a safe

and 'sure


it. Doubtless you are thoroughly familiar with this company.

“Your holdings are well diversified. Your $13,000 bonds are in four different classes and are evidently of a high grade of security. Some might think that in a list of this size you have too much in one stock-i. e., Pennsylvania Railroad. It is an excellent stock, but you might consider at some time putting part of this money into something else. This, on the understanding that this list represents Have you thought that you might participate in your complete holdings. “Please realize that it is difficult for

solving the housing problem of a great city ? us to give you a comprehensive analysis

City Housing Corporation 6% stock brings a without knowing what you paid for your securities, and, further, for just what pur

steady income to you, while employed in buildpose you are investing. I mean by this,

ing better homes, and making better citizens. whether you are investing primarily for present income or for future income; or whether you are investing, in whole or in

the high rent problem that part, to build up a fund for some spe


far been develcific purpose. Can you or can you not afford to take a 'business man's risk' in

oped. purchasing stocks and bonds?"


City Housing ment return, it is

Corporation stock TH

DIRECTORS 'His department does not possess, and also being used in

is a sound investnever has pretended that it does the most signifi- Alexander M. Bing

ment; 6% divipossess, any particular inside information

dends have been about securities. Yet our readers from cant housing move

Dr. Felix Adler time to time come to us with a serious ment of the decade.

John G. Agar

paid since the problem on their minds which they hope Already homes for

Leo S. Bing

Corporation was we will answer from such knowledge. Of 350 families have

William Sloane Coffin

organized, and a course we do the best we can. What

Thomas C. Desmond

Douglas L. Elliman follows is our reply to one gentleman; | been built at Sunny


surplus of

Prof. Richard T. Ely judge by it, please, about what this de- side, Long Island

$100,000 will

Frank Lord partment can do—and cannot. City. Your money V. Everit Macy

have been accu“Your letter of recent date has been is used over and

John Martin

mulated by the bevery carefully considered. We cannot

Mrs. Joseph M. Proskauer advise you what to do in regard to your over again in build

ginning of 1926.

Mrs. Franklin D. Roosevelt investments; we offer you what we being substantial

Robert E. Simon

For further inlieve to be facts, as followshomes for people

formation write “Market Street Railway, S. F., 1st of moderate in

City Housing CorMortgage 7s, due 1940, are the obligations of the corporation which owns and comes and sold to them on

poration, 587 Fifth Avenue, operates the street railway system of San easy terms. It is

easy terms. It is probably New York, or send in the couFrancisco. They are a first mortgage on the most intelligent solution of all the property of the system. The earnings for the past few years have shown a good margin over interest requirements.

"It is impossible to secure all the information desirable about the Consoli

A limited dividend companydated 5s, due 1939, of the Dominion

Organized to build better homes and communities.
Iron and Steel Company of Canada.
They are a morigage on property and

Authorized capital, $5,000,000, in shares of $100 each
plant at Sydney, Cape Breton. The
British Empire Steel Corporation has
taken over the property and issued no

City Housing Corporation separate report about it.

Please send me descriptive literature. "As to the First Mortgage, S. F. Series

587 Fifth Avenue, New York City A, 6s, due 1937, of the Remington Arms

Name.... Company, I am informed that last year

Street.. was a bad year because of the curtailed hunting season, but that the operations

City .....

State. of the company are more profitable this

in writing to the above advertiser, please mention The Outlook

pon below.



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