PIEDMONT COLLEGE

DEMOREST, GA.

Appeals to the Christian and Patriotic People of America for Help in this Time of Stress WHY?

I. Because this College is an Asset of Great National Value

1. It is ideally located: In the great Piedmont section, on the edge of the Blue Ridge mountains, in a region of entrancing beauty, in one of the two most healthful counties of the United States, in the geographical center of the Southeast, on the greatest railway system of the South.

2. It has a special field of incomparable needs and possibilities: While its doors open to all classes, its special field is the descendants of the non-slaveholding families of slavery days the Scotch-Irish of the Southern mountains and the pure Anglo-Saxons of the Southern lowlands. Four-fifths of the white people of the South never had a slave, while slavery robbed them of every industrial and social opportunity.

From this stock came the greatest of all Americans. Abraham Lincoln's mother was from the mountains, his father from the lowlands. He was born and had his childhood in a cabin poorer than the average mountain cabin. Piedmont College has for its field the millions of these kinsfolk of Lincoln.

They are a sturdy, loyal race. A New England minister visiting one of their schools wrote, "The number of six-footers here is unreasonable." In one mountain county so many enlisted for the present war that no draft was made in the county. In one lowland county one hundred and fifty-two were drafted, all passed the physical examination, and not one asked for exemption. Yet in the State in which this county is located thirty thousand drafted men signed with a cross because they could not write their names. We have no blood in America of better natural endowment. What an asset to develop for our Country!

3. It has an unusual record: Chartered September 7th, 1897, in twenty years its influence has transformed the mountain region about it. It has sent hundreds of teachers into the mountains and lowlands of the South, and hundreds of workers into other walks of life-ministers, lawyers, farmers, endowed with ideals and trained for service. It has developed and donated to the town in which it is located a self-supporting public school system, promoted a sewer system and water-works for the town, is introducing better farming methods, truck gardening, new breeds of cattle and hogs, is developing fruit culture and leading the way in many things in the practical life of the people.

4. It has a good beginning in equipment: It has four hundred acres of land, uses twenty buildings of various kinds, has the beginnings of ten industries, has about $300,000 worth of property, including a little over $100,000 of endowment funds. It has forty-eight teachers and workers, and although many of its students are in the and army navy, with crowded buildings-young men and it opened this year women in about equal numbers.

5. It is training coming leaders for the South and the Nation: It has students from thirteen States, and from this great field it is bringing new, fresh, and vigorous forces into our national life. It is disseminating ideals which rapidly germinate into valuable material, intellectual and spiritual assets.

6. It is thoroughly Christian: It exerts no pressure, uses no fervent evangelistic methods, yet so earnest are the students who come from these awakening people, so practical, wholesome and Christian is the spirit of the institution, that every member of its twenty graduating classes has taken a Christian stand and every graduate, with perhaps one exception, is "making good" in the world today.

II. Because War Conditions have Cut Off a Large Part of its Regular Donations

1. Its Budget calls for $50,000 in donations in addition to stated income to cover regular expenses and necessary extras.

2. It has cost life-blood to secure what has been secured (something over $20,000) and the work grows more difficult every day.

3. $10,000 is imperatively needed immediately and $20,000 more before the end of its fiscal year, June 30th.

It will be a calamity to have this institution, with such a field, such a record, and such need of its work, disastrously crippled, as it surely will be unless assistance is quickly given. Donations of any size will be gladly welcomed and promptly acknowledged.

Make checks payable to Piedmont College, and mail to the Treasurer, George C. Burrage, Box 174, Demorest, Ga., or for this month and next to Pres. Frank E. Jenkins, Room 85, 289 Fourth Ave., New York City.

Do Not Fail this Christian College in its Hour of Distress in the Year When it is Doing its Most Successful Work in Helping Make Democracy Safe This advertisement was made possible by a special donation from a friend of Piedmont.

"WON'T YOU WORK A

LITTLE FASTER?"

BY PORTER EMERSON BROWNE, OF THE VIGILANTES

(With most devout apologies to the late Mr. Lewis Carroll)

'Won't you work a little faster?" said the People of the State;

"There's a crisis close before us and we

haven't time to wait.

See how eagerly the soldiery is drilling on the shore!

Won't you give 'em shoes and guns and things so they can win the war? Will you, won't you, will you, won't you, will you win the war?

Will you, won't you, will you, won't you, will you win the war?

"You can really have no notion how successful they will be

When you give 'em ships and food and things and send 'em 'cross the sea!" But that State replied, "Quite so, quite so. We could not do before

The things we could, or would, which would, or could not, win the war. Would not, could not, would not, could not, would not win the war.

Would not, could not, would not, could not, would not win the war.

"We're doing everything we can. Recall, if that don't suit yer,

The further from the past we get, the closer to the future."

But the People shook their heads and said, "That's rather less than more,

For it doesn't give us victory or help us win the war. won't you, will win the war?

Will

you,

will

you

Will you, won't you, will

will you win the war?"

won't you,

you,

you, won't you,

SACRIFICE THE ORDER OF

THE DAY.

BY LIEUTENANT-COMMANDER HENRY VAN DYKE, U. S. N.

Former United States Minister to the Netherlands

When the first Liberty Loan came out, I subscribed as much as I could.

When the second Liberty Loan came out, I found that I could subscribe something more to that.

Now I am getting ready to subscribe something more to the third Liberty Loan when it appears.

Why should any American be surprised or grieved at being called upon for selfdenial in these perilous and glorious times? We cannot win this war with a couple of million soldiers and sailors and ninetyeight million slackers. Everybody, from the youngest to the oldest, from the richest to the poorest, st lend a hand.

Sacrifice is th order of the day.

་

Our live in t..s country for the past halfcentury ha been too easy, too prosperous, too comfortable, too free from care. It has tended to a false self-complacency and a silly sense of immunity from all dangersas if all the liberties and privileges which we enjoy were ours by a divine right and could never be threatened or taken away from us.

Such a state of feeling tends to fatty degeneration of the heart, mind, and con

science.

Now this war has come to shake us out of that dangerous condition and to teach us that we must all be ready to defend the things which we value most if we wish to keep them. It is a hard experience for all of us, and for some it will be a sharp and

Sacrifice the Order of the Day (Continued) bitter trial. But nothing is worth having which is not worth making a sacrifice for.

Those who do not take a part in that sacrifice now, either by personal service or by the consecration of their resources, are not worthy of the name of American. The happiest and most enviable are those who can do both.

The argument for the Liberty Loan as one of the absolutely indispensable munitions of our country in this war is too plain to need statement.

The argument for the Liberty Loan as the safest and surest investment in the world to-day ought to have weight with that prudence which is not altogether an unworthy part of patriotism. But I should not stress this argument too strongly. For, after all, it is not self-preservation that we must think of first. It is the preservation of the life and honor of our country.

My little daughter, twelve years old, was the first in our family to subscribe to the first Liberty Loan. She said to me one day in October: "Father, I have done something without asking your permission, but I hope you will not be displeased." "What is it?" I asked her. "Well," she said, "I took my money out of the savings bank and bought a hundred-dollar Liberty bond." Was I displeased? I guess not!

BAPTISTS, IMMERSION, AND THE RIGHT OF PRIVATE JUDGMENT

The editorial in The Outlook for December 19 on "Mr. Rockefeller's Contribution to Christian Union" opens up a question that needs a full and free discussion. The Outlook rightly says that "what distinguishes the Baptist churches is their spirit of individual liberty." Putting it into the old formula, it is "the right of private judgment." We Baptists have boasted of this principle for ages. The one and only great step we need to take to-day is to be consistent in its application in our churches. For example, no Baptist church that I have ever known thinks of making belief in missions an indispensable prerequisite to church membership-that question is left to the individual's own judgment; and yet what sane man would ever put the two things, immersion and the missionary spirit, on the same level? The missionary spirit in our churches is infinitely more important than any form of baptism can ever be. If we leave the greater thing to the individual's own spirit and judgment and refuse (as we do) to let him exercise that same judgment on the lesser thing, are we not in danger of being classed with those of olden days who "strained at a gnat but swallowed a camel"? Does not this action put us with those who tithe "mint and anise and cummin, and have left undone the weightier matters of the law"?

"The right of private judgment" has practically won out in the matter of the Comunion; and many Baptist churches have already taken the same stand with regard to immersion.

The best basis for church membership is that given in Acts x: "I perceive that God is no respecter of persons: but in every nation he that feareth [reverences] him, and worketh righteousness [does right], is acceptable to him." And all such ought to be acceptable as church members.

GEORGE DONO BROOKES,
Pastor First Baptist Church.

Johnstown, Pennsylvania.

You Could Live
For 12c Daily

Were All Foods Like Quaker Oats

In Quaker Oats, 1000 calories of nutrition cost 5 cents. In the larger package a little less. So the average daily need-2500 calorieswould cost 12 cents in this food.

Of course, one likes mixed diet. But what we urge in these days is-mix in what oats you can. Every dollar's worth used in place of meat saves an average of $7. Every pound used in place of flour means more bread for our allies.

The oat is Nature's supreme food. No other grain can match it in flavor and nutrition.

Oats are plentiful and cheap. You can serve five dishes of Quaker Oats for the cost of a single egg.

I am putting most of my current savings into United States Government bonds, but I have $1,000 in the savings bank, and I want to get it earning more. Will you kindly suggest a few issues suitable for this small investment? I have offered to me two $500 bonds to return about 6 per cent. I am getting only 4 per cent from the savings bank.

Generally speaking, we do not recommend the withdrawal of funds from savings banks for the purchase of investment securities. The great savings banks of the country are institutions conducted without profit for the purpose of enabling people of small means to invest their savings at a fair rate of interest with absolute security. Savings banks perform a great function in the country. The funds deposited in them are invested by the trustees with great care under rigid State laws for the protection of depositors.

About $5,500,000,000 is now on deposit in American savings banks-an amount equal to the entire stock of money in the country. But the savings banks do not hold the money intrusted to them by their depositors. If they held the money idle in their vaults, it would be earning nothing, and therefore the banks could pay no interest to their depositors. All of these savings banks funds, excepting a very small amount of till money, are invested in high-grade bonds, mortgages, and loans. In other words, the small savings of millions of people are through the savings banks mobilized to finance a very considerable proportion of the capital needs of the country. This $1,000 that you have in the savings bank may now be loaned to a wheat farmer in the Mississippi Valley, or it may be loaned to a railway that has used it for the building of new tracks. All the savings banks deposits are at work in the country producing wealth. Your interest from the bank is your share of this wealth production, turned over to you in payment for the use of your capital.

If you withdraw your funds from the savings bank, the bank will probably not be obliged to sell any of its securities to get the money for you, because some other individual will be making a deposit while you are withdrawing yours. But if a great many people, like yourself, decided that they preferred to do their own investing in securities rather than have it done by the savings banks trustees, the result would be that the savings banks would be obliged to sell securities to get the funds to pay depositors, and it might be that the very securities sold would be the securities bought by the depositors.

It must be plain to any one who stops to consider the function of savings banks that any wholesale withdrawal of deposits would force a heavy liquidation in our markets of the high-grade securities now in the vaults of the banks. At a time like this, when the financial markets of the world are burdened with an unprecedented volume of securities for the prosecution of the war, it is unthinkable that the savings banks should be obliged to force more securities on the markets. Of course the Government would not allow such a thing to happen. The Secretary of the Treasury would consider it a paramount duty to keep savings bank credit as sound as the credit of the Government itself.

A number of inquiries from Outlook readers have been received the last few months

66

seeking advice on the exchange of savings banks deposits for investment securities. To all of them we have made the same answer: Keep your money in the savings bank." We have gone so far as to say to readers who desired to purchase Liberty Bonds or War Savings Stamps with savings bank funds that it is better to leave savings bank deposits untouched, and use only new savings for the support of the Govern

ment.

We do not believe that money should be taken out of the savings banks to be loaned to the Government. The credit of the Government is more likely to be disturbed than aided by such a course. Over and over again it must be reiterated that the need of the Government now is for current savings. The war cannot be financed by the sale of securities by one citizen to another. This does not increase the wealth of the country by a single cent. New wealth can come only from new production, and the billions that we must put at the service of the Government to bring the war to a victorious end must come out of our current production and our current savings.

QUESTIONS AND ANSWERS

Q. A circular of the Company was mailed to me by a firm of investing bankers who are members of the New York Stock Exchange. It describes certain 7 per cent gold notes, issued in 1917 and maturing in 1920. With each $1,000 note is a stock option warrant entitling the holder to buy within a certain period 25 shares of stock at $45 a share. I cannot understand why this concern should try to float the stock at $45 when it is being sold on the exchange at $30.

A. The convertible bond is an excellent medium for providing new capital for a corporation. It is, in fact, an option to purchase before the end of a stated time the stock of the corporation at a stated price, usually fixed at a point considerably higher than the market valuation when the bond is issued. If the corporation prospers and the market value of the stock rises above the conversion price during the period, then the privilege becomes of value to the bondholder. For example, in the case of the corporation you mention, if during the period during which the bond can be converted into stock at $45 a share, the stock rises, say, to $60 a share, the holder of the convertible bond has the privilege of conversion into stock at a cost to him of $45 and selling the stock on the market for $60, thus making a profit of $15 a share.

In recent years convertible bonds have been a popular and desirable form of corporation financing, especially in providing new railway capital. Among the railway companies that now have convertible bonds outstanding are Atchison, Atlantic Coast Line, Baltimore and Ohio, Chesapeake and Ohio, St. Paul, Erie, New York Central, New Haven, Norfolk and Western, and Southern Pacific. When Mr. Harriman was building up his Pacific system, he used the convertible bond with great success, and the purchasers made handsome profits. The convertible bond is a desirable method of providing new capital for a growing corporation because it facilitates the raising of capital when there is no adequate market for new stock; while at the same time it makes it possible to put the company's financing on a sounder basis later on, by reducing the debt and increasing the capital if the growth of business during the period of conversion advances the market

Questions and Answers (Continued) value of the stock above the conversion price.

It is always desirable to finance a company with as little debt as possible, compared with the amount of share capital. The reason for this is that in a period of lean earnings a company with a large debt may be unable to pay its interest, and so be forced into bankruptcy; if the bulk of the capital is in the form of stock instead of bonds, then the reduction in earnings and the consequent reduction of dividends does not affect the solvency of the company. Interest on bonds must be paid, but dividends can always be reduced or passed.

We discussed in these columns several months ago the dangerous growth of railway debt as compared with capital in the form of stock. A railway with a large proportion of debt has a very narrow margin of safety in periods of thin earnings. Nearly all the railway bankruptcies of recent years have been of companies that were unable to sell stock and were forced to issue an abnormally large proportion of bonds. When earnings fell off, these companies were unable to meet their obligations to their creditors or bondholders, and were forced into receivership. The convertible bond is a means of bridging a company over a period in which it cannot provide needed capital requirements by the sale of new stock, and gives it the opportunity later on, if earnings sufficiently expand, to readjust its financing on a sounder basis.

Q. I own the following railway stocks:

10 shares Mil., St. Paul & S. S. Marie, costing $744 5 shares Southern Pacific, costing..

.......

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96

86

10 shares Atch. Top. & Santa Fé, costing. 10 shares New York Central, costing Would you advise selling these stocks at present prices, taking a considerable loss, and reinvesting the proceeds in higher grade securities with the possibility of getting a better return on my money y? I am a holder of both issues of Liberty bonds and shall invest in the next issue. I have about $1,000 to invest. What would you advise me to purchase?

A. We presume the "Soo" stock is not the common stock of this company, but the Wisconsin Central leased line stock that pays a dividend of $4. If you sell these stocks on the present market, you would receive about $2,500 for them. Your dividends are $180 a year. In other words, your investment is selling in the market now on a basis of about 7.2 per cent. You could invest this money in bonds or other securities of greater stability, but if you did so you could hardly expect to receive as high an interest yield. High-grade railway bonds are now selling to yield from 5 to 6 per cent, and there are some excellent public utility bonds that yield at current prices from 6 to 7 per cent. Some short-term securities, including international obligations, can be bought to yield a still higher return, but we think that, under the circumstances, you would do well to hold your railway stocks, all of which are of high rank. As was recently pointed out in these columns in a discussion of Government control of railway financing during the war, the dividends that you are now receiving on these railway stocks will undoubtedly be paid during the period of the war, and there is every reason to believe that when railway financing is readjusted after the war the Government will deal fairly with the owners of railway securities.

While a long war would mean a further decline in the market quotations of these stocks, we believe that the dividends are as well assured as any corporation dividends ;

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we can certainly anticipate a rise in the market value of these stocks when peace is in sight.

As to the further investment of $1,000 that you are now considering, we think you would do well to diversify your purchases of securities. You have the choice of highgrade farm and real estate mortgages, of underlying railway bonds of undoubted stability, seasoned public utility bonds, and short-term corporation and Government securities. Any of the large financial institutions advertising in The Outlook will be glad to give you a selected list of securities of these various descriptions.

We suppose that you are putting some of your savings in the Government War Savings Stamps. We know of no better investment. They return about 4 per cent and are easily converted at any time into cash. We think that every investor who is accumulating savings ought to put a certain portion of his savings at the disposal of the Government by the purchase of War Saving Stamps. These can be bought at post-offices, banks, and retail stores throughout the country.