Judge — July 29, 1922 — page 30: what you’re looking at

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Investment Bureau ConpucTED BY THEODORE WILLIAMS Subscribers to Jupae are entitled to answers to inquiries on financial questions, and in emergencies to answer by telegraph. 2 stamp should alcays be inclosed. giciny full name and exact strect address. No charge is made for this service, All communications are treated confidentially. ni Address all inquiries to the Financial Editor, Jvoae, 627 West 43d St., New York, ‘Anonymous communications will in no case be answered. ‘A bro-cent postage Fantastic Finance in Russia take to govern a country they could make no worse mess of it than has The Bol- been [' a group of madmen should under- the Soviet régime in Russia. shevist leaders have commonl characterized as extreme fanat rant of the first principles of government, economics, and finance, and carrying im- practical ideas to a logical and disastrous conclusion. But when we are told that Lenin, the chief moving spirit of Bolshe- m, is afflicted with almost incurable spect that his bodily ail has sanity, and that he has not been altogether responsible for his acts. Certainly lunatics just escaped from an asylum could hardly have been more in- competent as financiers than he and his associates have been. Te monstrous failure of the present Russian financial system was glaringly disclosed in the report made by the Rus- sian finance minister as a delegate to the Hague cconomic conference, vir- tually the adjourned session of the recent Genoa conference. This report was a most peculiar document, containing fan- ssible estimates, and it showed all too plainly the terrible state of Russian finance. By the Soviet’s own admission there is now in circulation in Russia 280,000,000,000,000 (two hundred and eighty trillion) paper rubles, which have no gold reserve to back them and whose total is being continually increased, the amount of new issue in June alone having been 85,000,000,000,000 rubles. The Soviet government’s budget is far from balancing. Its income this year from taxes will leave a deficit of 20 per cent. and it will have to remedy that by issuing more scraps of nearly worthless paper. In 1921, 98 per cent. of the cost of operating the government was met by the printing press. To-day one good American dollar is worth 2,300,000 paper rubles and $150,000,000 would buy up the whole of Russia’s inflated currency. Should the inflation proceed, as seems likely, rubles may yet become about as valuable as last autumn’s fallen leaves. A country in such a fiscal bog, with rulers who have no conception of sane admin- istration, will hardly be able to induce capitalists to make it the loan it is clamor- ing for. . HILE Russia is the most awful ex- ample of craziness in finance, some other European countries have done their best to emulate her. The valua- tion of the ruble (formerly 51.4 cents) in American money has reached the lowest pit of depreciation. But the Austrian crown, par 20.3 cents, may be had in Uncle Sam’s coin for a little over half a cent; the Polish mark, par 23.8 cents, for less than 3 cents; the Rumanian leu, par 19.3 cents, for under two-thirds of a cent; and the German mark, par 23.8 cents, for less, recently, than one-fifth of a cent. In other parts of Europe there has been a considerable decline in the buying power of inflated paper currency. In view of the unsettlement of business which always attends excessive issues of paper money, the United States is to be congratulated that Henry Ford, Thomas A. Edison, U. S. Senator Ladd, et. al., who advocate emission by the Govern- ment, for various purposes, of vast sums of fiat money, have not an extensive fol- lowing. The American dollar is the soundest bit of currency in the world and we shall do well to maintain its existing worth, Answers to Inquiries L., Maxcnester, N. H.: Pennsylvania Edison, which is a reasonably safe purchase Nebraska Power Co. Eas been pay s years on its preferred stock and the latter also seems reasonably safe. Atianta, Ga.: United Alloy Steel has resumed lends at the rate of 82 per year, which makes a fair Id on market price. Reading and Lehigh Valley are both so high that the return from dividends is only moderate. Western Union, paying 7 per cent., i cellent purchase. The Italian bonds you hold better position now than they were months is recuperating from the effects of the wa advise their sale unless you can make a » although Italian bonds are not so highly regarded as those of France, England or Belgium. H., Hawanvew, Ia.: Great Northern Ore is paying 84 per year but has had to draw on surplus for dividends, The stock is not a first-class investment. Sinclair Oil has put itself on a 2 per cent. dividend basis, which makes the stock less speculative. The company has a large future, undoubtedly, but its dividend makes only a moderate yield on market price. International Petroleum has merit, though its yield on current quotation is not high. 7, Vaxoronr, New | The Wright Aero Co. is a pro- gressive concern paying dividends o year. Ameri- Gan LaFrance also pays $1, It manufacturse fre engines, ight Aero and American LaFrance stocks are ed on the New York Stock Exchange and are readily marketable. If you put stock into the hands of a broker for sale he is supj to offer it at once and not to delay for a day or for a week. It is possible that he may be unable to secure a bid at once. There are times when nobody will bid on certain stocks. Durant Motors, Inc., is the parent company. Durant Motors of Indi subsidiary. What difference there may be in th dends nobody can foresee. Neither is earning at present. If stock is bought on margin, margin re- quirement must be kept up and the additional amount 23 N_INVESTOR in the 8% Pre- ferred Stock of Standard Gas and Electric Company receives a high return with an un- usual degree of stability, from a large organization whose securities have an active National market. The Preferred Shares are listed on the Chicago Stock Exchange. Dividends are paid in March, June, September and December Ask for Descriptive Circular L11 H. M. Byllesby and Co. 208 South La Salle Street, CHICAGO NEW YORK BOSTON 111 Broadway 14 State St. IF INTERESTED IN BUSINESS AND FINANCE, keep informed by reading the Bache Review, a ten- minute weekly summary of the business and finan- cial situation. It focuses and interprets currents of to-day and indicates thei . nt to business men for three months, without charge. J. S. BACHE & CO. 42 Broadway New York City demanded would depend upon the number of points of decline. I do not favor the idea of using paid-for stock as collateral for purchase of securities on margin. Why risk a paid-for stock of merit? ‘The Vitamin Food Products Co. is a new enterprise and its future is problematic. ‘The American Institute of Finance is a concern of high standing, with which men of excellent ability and reputa- tion are connected. G., Fort Tuomas, Ky.: You certainly seem to have fallen into the hands of despoiling promoters. It is re- grettable that did not Took into matters more care- fully before you parted with your money. How can Uncle Sam tell what kind of letiers are sent through the mails unless some! makes a complaint? His men can’t read the contents of sealed envelopes. I don’t sec how I can do anything to help you in your plight. The damage has been done and your lawyer ought to be able to tell you whether there was fraud in the transaction and whether it is worth while to proceed with litigation against the offending concern. G., Ents, Pa.: The first mortgage 6 per cent. twenty- year bonds of the United Fuel & Gas Co., due January 1, 1936, are listed on the New York Stock Exchange. The company supplies natural gas to about 43,000 customers in over fifty municipalities in Ohio, Kentucky, and Pennsylvania. _ Its earnings last year were four and three- imes interest requirements. ‘The bonds were ly purctineabie at a price to yield 6.15 per cent. New Onves La.: | The city of Montevideo, Uruguay, 7 per cent. sinking fund gold bonds due June 1, 1952, are a pretty good Rraposition. ‘The callable for fifteen years and are payable in United gold. The loan is a specific charge on Montevideo's receipts from sanitation, ligh and paving taxes, which receipts have been steadily increasing for years. ‘The issuing price netted about 734 per cent. i.» SCRANTON, Pan American Petroleum is one of the good oil stocks. ‘The company owns a cdntrolling interest in Mexican Petroleum. As the stock is paying an excellent dividend, it would be better to hold it than to sell it at a los Lee a good moderate-priced Eeduaieiny paying a fairly satisfactory dividend. n't dispose of it at a lo: You might also hold Royal Dutch. You paid a little more for it than present market price, but vou are getting a good return from your purchase. I would not call Durant stock “a good buy.” The com- pany probably has a future, but it has not got into large operation as yet. The stock is, therefore, at best a fair speculation. “Mexican Seabourd has, according to recent news, excellent prospects. N., Lexzuvn, Tut: ‘There is every reason for suy posing that coal mining in general will be profitable in the future as in the past, provided the labor controversy seems to be_ settled it. As to particular mines, in- cluding the Golden Rule, I am not able to speak. You know whether your investment has been a paying one, comicbooks.com