T

HERE are as many different kinds of investments as there are styles of women's hats. And just as one style of hat may be eminently suited to one woman and absolutely unsuited to one another, so there are investments which fulfill some people's requirements and do not at all measure up to those of others. A man with an income of a million dollars a year, for instance, would probably find it more to his advantage to invest his money in 4 per cent tax-free Government or municipal bonds than to buy 8 per cent bonds of a concern on which he would have to pay the income tax. For a man with an income

of two thousand dollars a year, however, conditions would prob ably be reversed. Everything depends upon the circumstances of the individual investor. There are so many kinds of investments to be had, however, that there is no good reason apparent why every one should not get the right kind.

Take the man with a small salary, a family to support, and scanty savings; he would be foolish to invest his meager capital in a speculative mining or oil venture, where the chances of loss outweigh the probabilities of gain by about a hundred to The proper investment for him is something as safe as

one.

TH

HE Federal Government has proposed to advance the railroads, on account of withheld compensation, and similar items, half a billion dollars within the next six months.

This should materially improve the financial position of the railroads and hasten the time when they can make much needed expenditures for maintenance, improvements, and expansion.

This should have a direct influence on various industries connected with transportation and facilitate the liquidation of a considerable volume of "frozen" credit, which should tend to stimulate business generally.

The recent decision of the Railroad Labor Board reducing railroad wages on an average of 12 per cent. went into effect on

July 1, and is expected to save the railroads approximately $360,000,000 annually.

Lower prices for coal, it is estimated, will result in a saving during the second half of the year of probably $25,000,000.

These savings are being effected in two of the largest items of railroad expenditures-labor and fuel.

During the first five months. of this year the net operating income of the railroads was $90,380,000, as contrasted with $26,400,000 in the corresponding period of last year.

The railroads are the arteries. of trade of this country. Their revitalizing is an important step toward the revival of business as a whole.

to lose he cannot afford to take chances with it. So with a woman dependent upon her income; she has no business to take any chances with her capital and her investments should be selected with as much care as can humanly be exercised.

None of this is new. It has all been said thousands of times before, and it would seem as if it were unnecessary to repeat it again. Yet people apparently do not learn the most elementary lessons of investing; at any rate, they seem to ignore these lessons on every possible occasion. Perhaps it is due to the war. Prices are being deflated, money is being deflated, everything except people's ideas. As one man recently remarked, there is little chance that our business and every-day life will be straightened out until we realize that all of us are not entitled to own an automobile, a talking-machine, and a closet full of clothes; that we cannot go to theaters and cafés every evening and spend our summers at the seashore or in the mountains. was While the war on, too many people became accustomed to these luxuries for our own good. Now they are not willing to admit to themselves that these things are of the past, and that the order of the present day is work and more work, followed by economy and saving. These are the things which will save the world in general and the United States in particular. Those people who are living as they were living three years ago and who seem to think some mysterious force is going to set things right can make up their minds that no such thing will happen. Thrift, like charity, begins at home.

Just as our ideas about living need deflating, so with our ideas of what constitutes a profitable investment. People who bought the "war babies" and doubled their money think an investment yielding 6 per cent is beneath their notice. Only a short time ago "everybody" was making money in the stock market. How many are making it now? As a matter of fact, few people are buying. Compare the recent transactions on the Stock Exchange with those of war days and just after the war. Of late the number of shares dealt in has averaged in the neighborhood of three hundred thousand, which is dull business when a comparison is made with the million and a half and two million share days we had formerly. Dealings in "outside" stocks too have fallen off and the bond market has slumped. Is it because people are afraid to buy, because they have no money, or because they think it will be to their advantage to wait? All three of these considerations exert their influence, no doubt; but is any one of them the real reason? Is it not possible that people are still thinking about the profits of former days and are not content to take a fair and reasonable return on their money? In other words, their ideas about what they should get from an investment are not deflated.

What should one get from an investShould he get large ment, anyway? profits or a moderate return combined

Come to
New England

this Summer

NEW ENGLAND extends an unusual invitation

to the vacationist this year. The principal Tercentenary celebrations, during July and August, will be of international interest and significance.

Opportunity is offered by New England for every form of wholesome recreation. Plan to spend at least a part of your vacation visiting some of the scenes of early American history-Plymouth, Provincetown, Boston, Concord, Cambridge, Salem and Portsmouth, to mention only a few.

The Old Colony Trust Company can be of much practical assistance to those who decide to visit New England. You are cordially invited to make our office your temporary business headquarters and address. And during your stay, whether it be short or extended, we shall be glad to have you take full advantage of our banking, investment and trust services.

The facilities of our commercial Banking Department, in particular, are exceptionally complete, and assure the efficient handling of all matters of a general banking nature. A temporary checking account will afford you much convenience. Our three offices, two of which are in the heart of the Boston shopping district, may be used interchangeably by our depositors. Interest is paid on all daily balances and certificates of deposit in excess of $500.

Our numerous correspondents, including those in the important cities of New England, expedite collections in this Federal Reserve District.

Our modern trust company service is described in detail in our booklet "Your Financial Requirements." You will also find much of interest in our historical brochure entitled "New England-Old and Nerv." May we send you either or both of them? Address Dept. O

OLD COLONY TRUST COMPANY BOSTON

1620

Member Federal Reserve System

with safety of principal? In other words, which should a man with money to invest consider first, safety or yield? Investing is purely a business proposition and should be regarded as such, and the aim of most businesses is to make money for the persons managing them. On this basis, therefore, the choice between safety and yield should be made.

The individual's circumstances are to be considered. As a general proposition it is proper to say that the more an investment yields the less safe it is, and the investor should decide whether he can afford to take risks with his money in order to increase its yield. Let him picture himself as having lost his money, and such. a picture may help him to make his decision. If he can afford the loss, he is justified in taking risks, but not otherwise. Every one has seen the terms "speculations," "business man's investment," "gilt-edged," and the others employed in describing different kinds of securities. Every one with money to invest should give careful attention to the kind suited to him.

Generally speaking, securities may be divided into two classes, safe and speculative. Broadly speaking, bonds are safe and stocks speculative. Of course there are varying degrees of safety in bonds and some stocks are high-grade investments, but if the man with little money will ignore stocks and buy bonds he will not go far wrong. Because bonds are fer than stocks they yield less, and on

Office for Travelers 123 Pall Mall, LONDON, S. W.

this account many people pass them up in favor of stocks-often to their sor

row.

A bond is a direct obligation of the issuing company, secured by the pledge of definitely named property. Stock evidences a share in the business; if profits are large the stockholders benefit, but in case of loss the stockholders must bear it. Take the case of the New York, New Haven, and Hartford Railroad Company; as most people know, this great corporation nearly went to smash a few years ago. Dividends have not been paid on the stock in years and the value of the shares tumbled precipitately, bringing suffering and loss to thousands of people. There seems little prospect of dividends being resumed for a long time. But what about the owners of the mortgage bonds of the New Haven road? They are receiving their interest regularly and are not worrying about their investments a bit. The interest rate on bonds is fixed, and the buyer of bonds can figure exactly what the yield on his investment will be; he never expects a "melon" to be cut for his benefit and he does not look forward to a share in any large profits which may be made. What he buys is safety. He does not expect to divide increased earnings, and, on the other hand, he does not expect to share in the losses. If his interest is not paid, he and his fellow-bondholders can sell the property and get their money. Still, if one will insist upon looking at investments from the standpoint of profit only, it is en

bondholder will make more than the stockholder. Which were the more profitable securities of the New Haven, the bonds or the shares of stock? Examples like this are well to bear in mind.

Whoever reads the financial pages nowadays must notice the large number of companies which are omitting their regular dividend payments. All sorts of reasons are given, but the plain truth is that earnings have not been of sufficient size to justify dividends. On the other hand, how many companies are failing to pay interest on their bond obligations?

Suppose you are a stockholder in the Blank Company, and suppose your nextdoor neighbor holds bonds of that company. During the war it was probable that your stock paid extra dividends and perhaps the regular rate was increased. You felt pretty prosperous and rather scorned your neighbor, who got only 5 per cent from his investment. Further, as a stockholder you were one of the owners of the business and entitled to a voice in its management. How are you feeling now? It may be that the Blank Company is not paying dividends any more, and possibly you are worried about the value of your shares. The chances are that your neighbor is not worrying, however, for ten to one his interest is being paid regularly and his bonds are absolutely safe. He bought safety and you purchased yield. You got yield for a time perhaps, but suppose you were to sell your stock now? Would the depreciation in the value of the shares amount to more or less than the dividends you have received? Whose investment is better over a period of years, yours or your neighbor's?

Safety and yield are difficult things to combine, and in most cases it is neces sary to make a choice between the two, It is for the individual, who is familiar with his own circumstances and prospects, to decide whether he is justified in risking safety in order to obtain yield or whether he must have safety at the cost of every other consideration. This decision made, it is fairly simple to get the advice of your banker concerning what to buy.

INCORPORATE Least cost. Greatest advantages Cost not affected by amount of IN ARIZONA capital. Transact business and keep

books anywhere. Stock made fuck paid and non-assessable by using our forins. Laws, blanks and directions free. Stockholders are exempt from corporate liability. Stoddard Incorporating Co., Box 8-N, Phoenix, Arizona

Old Age
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As you advance in years

you want to know that your money is safe.

In old age, comfort and peace of mind are assured if you invest in time tried 7% FIRST FARM MORTGAGES-38 years without a loss to investors-Write for offerings and pamphlet "S."

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ESTABLISHED 1883-CAPITAL & SURPLUS $500,000.00 GRAND FORKS, NORTH DAKOTA.

1921

PUBLISHER'S NOTES

F, after taking a swing at the three

I prize contests we have already con

ducted, your contest spirit is still functioning, we should be glad to have you suggest subjects for the remaining two that are still to be announced.

I'

T would be as hard for The Outlook

to announce what it is going to do next year as for the New York "Times" to forecast its plans very far in advance. That depends largely upon what happens in the world. And the most intimate interpretations of important news developments are not always written by people with famous names. As evidence, however, that The Outlook during the past year has not been without its distinguished contributors, it will be recalled that there were articles by such American statesmen as Robert Lansing, Calvin Coolidge, Will Hays, Theodore Roosevelt, Harold Knutson, and F. M. Davenport. There were feature articles by such eminent foreigners as Stéphane Lauzanne, P. W. Wilson, and Baron S. A. Korff. There were feature articles by Julian Street, John Burroughs, George Kennan, Bruce Barton, Isaac Don Levine, and W. R. George. Men and women of letters included E. V. Lucas, Brander Matthews, James Huneker, Stephen Leacock, Christopher Morley, George Ade, Owen Wister, Mary Roberts Rinehart, Elsie Singmaster, Stewart Edward White, Emerson Hough, Ida M. Tarbell, Joseph C. Lincoln, Reginald Wright Kauffman, Gertrude Atherton, Hermann Hagedorn, Aline Kilmer, and, Thomas L. Masson. The stuff of which The Outlook is to be made for the next fifty-two issues will be as carefully selected and as important.

MIT the chatter about New York

cession of plays, good, bad, and indifferent, presented there week after week, and the actors who appear in them," demands C. H. J. B., of Los Angeles, California. "Delete all profanity from your columns. If in any case of delineation of character or report of a conversation it appears necessary to indicate that profanity was used, a simple dash is sufficient." On the other hand, almost the same mail brought us a letter submitted in Contest Number Three in which the contestant winds up with an explosive "damn" and instructs us to repeat the word until the length of his letter reached the 600-word limit.

"I

N the June 8 issue, I notice that a gentleman from Oregon (which State I am very familiar with) says that The Outlook does not appeal to him. I've been reading The Outlook for quite a few years, and I think that, if anything, it has improved. My opinion seems to be the existing one over at school (Carnegie Institute of Technology), if authority is wanted on international questions; if information for a debate is needed or if material for a theme is desired, the English department refers us to The Outlook and to one or two others. They merely confirm the opin

ion that I have held all along, that The Outlook is all right, which point I should like to debate with the gentleman from the rainy backwoods State."

FOR THE CRITICS

BY REGINALD WRIGHT KAUFFMAN 7ou, who in majesty apart

You

Form and declare the Laws of Art:

How certainly you clip the palms
From Palestrina down to Brahms;
How lessen, with a shrug or cough,
Now Chopin, now Rachmaninoff!

They live or die upon your words.
Please, that Composer's merits weigh
Who, in some rude, uncultured day,
Wrote the brief songs of birds!

Tell us how ranks (for who else knows?)
The lost Cellini of the rose;

Or with what skill that Dorus spoke,
The Architect who built the oak.
You codify and analyze

Titians, Rembrandts, or Fragonards:
That Artist should we scorn or prize
Who, on the canvas of the skies,
Here paints the sunset, there the stars?

How ranks in your enduring plan
The unknown Phidias of man?

Will His works live, the Poet, He
Who, to encourage and console,
Wrote odes to immortality
Between the covers of the soul?

Thumbs up or down? We bide your nod! Is it True Art, this work of God?

WORKING GIRLS'
VACATION SOCIETY

BY E. A. BUCHANAN, ASSISTANT SECRETARY

OR many years the railways have

Fgiven the Working Girls' Vacation

Society of New York City, for the use of the girls, reduced fare to our houses. This year one of the roads has refused this privilege, and the Society is obliged to pay full fare for every girl who goes to any of our places in Connecticut. We operate six houses there.

On account of this extra expense, the Society will not be able to send as many girls as formerly unless the generous public and our kind friends will come to our assistance. Owing to the excessive heat of the last few weeks many girls are applying every day, but we can't take them unless the money comes in.

Who will help us give these girls the rest and change they so much need? Forty dollars will pay board, traveling expenses, and medical care for a month at Santa Clara, for a girl with tubercular tendency. Ten dollars will pay for a vacation of two weeks, also traveling expenses.

Contributions, large and small, may be sent to the office of the Society, 105 East 22d Street, New York City. Checks should be drawn to Working Girls' Vacation Society.

CONTRIBUTORS' GALLERY

ULIAN STREET is one of the best-known

J'American feature wf the best-known

the reputation of writing not only engagingly but truthfully. The story is told that after he had published an unexpurgated description of one of our Western cities the city authorities in their wrath changed the name of the toughest street in the town to "Julian Street." He was born in Chicago in 1879 and was educated in the Chicago public schools and in Ridley College Preparatory School, at St. Catherine's, Ontario. He has been a reporter on the New York "Mail and Express" (now the "Evening Mail"), on the staff of which he was later dramatic critic. He is the author of "My Enemy the Motor," "Paris à la Carte," "Ship-Bored," "Welcome to Our City," "Abroad at Home," and "American Adventures"; he collaborated with Booth Tarkington on the comedy Mr. Street "The Country Cousin." writes of old Japan as observed by Viscount Shibusawa.

L

YMAN ABBOTT, the Editor-in-Chief, hangs the picture of the Smiley brothers in his gallery of his contemporaries.

REGINALD WRIGHT KAUFFMAN was for

merly associate editor of the "Saturday Evening Post" and of the "Delineator." During the World War he was a newspaper correspondent with the French, Belgian, British, and American armies, after having enlisted for service in France and having been honorably discharged on account of physical disability. He is the author of "The House of Bondage" and many other books. He lives in Columbia, Pennsylvan