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.

"Now, 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 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.

Adventure

fills each day with rare and delightful activity

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.

Treasures

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

ture.

There are quaint shops in which you find priceless treasures.

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

heavy silks and brocades, batiks and rare furniture are to be bargained for and forever 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.

Investors everywhere have asked these questions

Can YOU answer them?

SUPPOSE you have 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.

Write to nearest office for Booklet OL-Y5

MR

us.

ONEY, common (or uncommon) thing that it is, is something of a mystery to many of While the average person understands the results, if not the causes, of the fluctuations in the purchasing power of money, he is almost invariably at a loss when he hears mention of the "price of money" or money rates. Yet money rates are fundamental to an understanding of investments, and particularly of investments in bonds.

Sometimes money is said to be cheap or low; sometimes it is high. From day to day it fluctuates in greater or less degree. From year to year it swings in larger curves. The movements of money are closely watched and are reported in the press of the world. The change of a fraction of a per cent in the Bank of England's discount rate may be the leading event of the day. To the practical business man, the investor, the banker, money rates are studied and made the basis of planning and of action.

In speaking of money rates we do not refer to the legal rate for money. This is the maximum interest rate allowed by statute, and interest charged in excess of the legal rate is called usury. Incidentally, it is interesting to note that, while 6 per cent is the legal rate in practically all the Northern States, the rates in the South are 7 and 8, which fact accounts for the higher yield of certain Southern bonds.

The rate or price of money-that is, interest has been defined as "rental payment upon money; a charge made to the borrower by the lender for the use of money." This definition leads us to see why it is that rates can fluctuate just as prices of or rates for other commodities and services vary up and down. At the bottom of these fluctuations lies the law of supply and demand. When there is a sharp need for renting money, the natural tendency is for the rental to rise. If the demand comes at a time when supply is plentiful, the rise will be slight and gradual; if it comes when money is scarce, it will be rapid and high.

And the opposite is true under opposite conditions.

The so-called money market, in which the law of supply and demand does its work, comprises the whole world and is affected by multitudinous conditions. In the narrower sense, the money market consists of lenders, as banks, discount houses, brokers; borrowers, whether commercial, speculative, agricultural, or industrial; and intermediaries, as note and money brokers and stock exchange brokers.

Because of the varied uses to which money is put there are various kinds of loans, and hence different sets of rates or prices for money. The most familiar kind of loan to the average man is the time loan for a specified number of months, usually with the understanding that it can be renewed. The time loan is secured by sound, salable collateral. The price of such money is close to the legal rate; sometimes, when money is plentiful, below it. Then there are call loans on stock exchange collateral. These are the loans which finance stock-market trading; they are termed "call" because they may be called or terminated on a few hours' notice. Call-loan rates are lower than time-loan rates as a usual thing. The third largest class of loans are those made by manufacturers and merchants on their notes. These are defined as "commercial paper" loans, and the rates vary in accordance with the standing of the firm and the condition of the money market. Less important to the average man, but of vast importance in the financial world, are the Federal Reserve discounts and bankers' accept

ances.

Between the course of the money market and speculation and business there is a well-defined and easily recognized relationship. "For example," we read in a study made by the Harvard Committee on Economic Research, "with declining security prices, declining commodity prices, and declining interest rates, there is adequate evidence that business is passing through phase one, depression, of

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.

NO LOSS TO ANY INVESTOR IN 52 YEARS

NOW
PAYING

7%

nificance of money price changes.

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.

"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

T

with SMITH BONDS

Thousands of men and women, all over the world, have put their money into these time-tested investments

HE wish for a substantial
independent income-an
income
apart from
your personal
earnings doubtless has been in
your mind many times. But have
you ever studied, in black and
white, just how large an income
you could create with the money
you save and invest?

Our booklet, "How to Build an Inde-
pendent Income," enables you to look
forward five, ten, fifteen years, and more,
and see the results you can accomplish
by putting your money
into 7% Smith Bonds,
under our Investment
Savings Plan.

It will show you, for ex-
ample, that by investing
$50 a month in 7% Smith
Bonds, and reinvesting
your interest at 7%, you
will have, in ten years,
$8,657.10. This amount,
invested at 7%, will give
you a monthly income of
more than $50; that is, a
monthly income greater
than your monthly in-
vestment. A larger or
smaller monthly invest-

Name..........

ment will produce a proportionate result. One reason for the rapid growth of your savings under our plan is that you realize the full earning power of your money immediately. Every payment that you make $10, $20, $50, or more earns 7% from the day it is received by us. You are not required to make regular monthly payments if it suits you better to pay at irregular intervals.

SMITH BONDS

ARE

After an initial payment of 10% (more if you wish) you have ten months to complete your purchase of a $100, $500 or $1,000 Smith Bond on any terms convenient to you. You may use the plan to buy a single bond in 10 months, or one bond after another from year to year. Send your name and address today, on the form below, for our "Independent Income" booklet. We also will send you our booklet, "Fiftytwo Years of Proven Safety," which explains the time-tested safety features that have made Smith Bonds the choice of investors in 48 States and 30 foreign lands.

SAFE BONDS Smith Bonds are First Mortgage Bonds, strongly secured by improved, income-producing city property, and protected by the safeguards that have resulted in our record of no loss to any investor in 52 years.

You

Current offerings will pay you 7% for any period from 2 to 10 years. may buy these bonds in any amount, in $100, $500 and $1,000 denominations, outright or under our Investment Savings Plan.

G-G

6% REAL ESTATE BONDS

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

THE BOND DEPARTMENT OF THE BALTIMORE TRUST COMPANY offers several new issues of 6% Real Estate Bonds from which to make a selection for your November funds. Each issue is secured by First Mortgages that are:

1. Approved as to investment stand

ard by The Baltimore Trust Company, which has resources of more than $50,000,000.

2. Guaranteed as to principal and interest, except as to title, by the United States Fidelity & Guaranty Company, which has resources of more than $40,000,000.

3. Guaranteed as to title by the New

York Title & Mortgage Company, which has resources of more than $16,000,000, or by some other Title Company approved by The Baltimore Trust Company and the United States Fidelity & Guaranty Com

pany.

Every investment made in these bonds istripty secured-first, by the ample capital and surplus of a well-established Mortgage Company; second, by First Mortgages made for not more than 50% of the value of leasehold property and not more than 60% of the value of fee simple property; third, by the guarantee of principal, interest and title on each mortgage.

Each bond is certified by The Baltimore Trust Company as Trustee, or by some other Bank or Trust Company approved by The Baltimore Trust Company and the United States Fidelity & Guaranty Company.

Consult Your Own Bank or Banker $500 and $1,000 bonds of any available issue or maturity (1 year to 10 years) are sold at par and accrued interest to yield 6%. All issues provide for the refund of the securities tax of any state up to 41⁄2 mills in any one year. Orders for these bonds may be placed with your own Bank or Banker; or with The Baltimore Company, Inc., 52 Cedar Street, New York, N.Y.; or sent to the Main Office of THE BALTIMORE TRUST COMPANY, 25 EAST BALTIMORE STREET, BALTIMORE, MD.

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 taken as of July 3, 1925. An eighth point was added to the bond prices to cover commissions and the stocks were taken at enough over the average prices for the day to allow for commissions. Accrued interest was not figured for the bonds, but $3,000 was left uninvested. which might be used for this and for a bank account."

From Inquiring
Readers

SOM

OME one out in South Dakota has asked us about the First Mortgage

7 Per Cent Bonds of the United Carbon Company, an issue of $2,500,000 of which is now being offered, dated April 1, due 1931.

Everything about the issue seems to be in excellent shape. But there is a "but" which investors would do well to keep in mind in this and in similar cases.

A high return is offered. The company is a new one, formed by a consolidation of several existing concerns. The trustee under this issue is one of the best in the country-the Guaranty Trust Company of New York, but the trustee cannot control the fortunes of the company 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.

it. Doubtless you are thoroughly familiar with this company.

"Your holdings are well diversified. Your $13,000 bonds are in four different

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 your complete holdings.

"Please realize that it is difficult for us to give you a comprehensive analysis without knowing what you paid for your securities, and, further, for just what purpose you are investing. I mean by this, whether you are investing primarily for present income or for future income; or

part, to build up a fund for some specific purpose. Can you or can you not afford to take a 'business man's risk' in purchasing stocks and bonds?"

THI

HIS department does not possess, and never has pretended that it does

possess, any particular inside information about securities. Yet our readers from

time to time come to us with a serious problem on their minds which they hope we will answer from such knowledge. Of course we do the best we can. follows is our reply to one gentleman;

What

judge by it, please, about what this de

partment can do and cannot.

"Your letter of recent date has been very carefully considered. We cannot advise you what to do in regard to your investments; we offer you what we be

lieve to be facts, as follows

"Market Street Railway, S. F., 1st Mortgage 7s, due 1940, are the obligations of the corporation which owns and operates the street railway system of San Francisco. They are a first mortgage on all the property of the system. earnings for the past few years have shown a good margin over interest requirements.

The

"It is impossible to secure all the information desirable about the Consolidated 5s, due 1939, of the Dominion Iron and Steel Company of Canada. They are a mortgage on property and plant at Sydney, Cape Breton. The British Empire Steel Corporation has taken over the property and issued no separate report about it.

"As to the First Mortgage, S. F. Series A, 6s, due 1937, of the Remington Arms Company, I am informed that last year was a bad year because of the curtailed hunting season, but that the operations of the company are more profitable this

opportunity. Your money

is not only bringing you a safe and sure invest

the high rent problem_that has SO far been developed.

ment return, it is also being used in the most significant housing movement of the decade. Already homes for 350 families have been built at Sunnyside, Long Island City. Your money is used over and over again in building substantial homes for people of moderate incomes and sold to them on easy terms. It is probably the most intelligent solution of

easy terms.

City Housing Corporation stock is a sound investment; 6% dividends have been paid since the Corporation was organized, and a surplus of over $100,000 will have been accumulated by the beginning of 1926. For further information write City Housing Corporation, 587 Fifth Avenue, New York, or send in the coupon below.