Salt Lake Tribune | 1914-10-30 | Page 6 | Talks on Thrift

TALKS ON THRIFT Essentials of Safe Investment. In making an Investment. I recommend rec-ommend great regard for the security secur-ity of the principal and not so much for the amount of income to be derived de-rived therefrom. G. S. Bowdoin. Just how to invest money w ith absolute abso-lute security nnd fr a definite income cannot be told in a fw words. It must be learned from experience preferably someone else's experience. Usually ones safest guide in investment invest-ment matters Is lis banker. His experience experi-ence in investing safely the bank's funds, his knowledge of the pitfalls, and his observance ob-servance of money successes and failures, fail-ures, qualify him to give advice. If one is to get anywhere as an investor in-vestor he must make a beginning take the first step and in doing so he should consider these cardinal points: Klrst Securit y of principal. It is utterly ut-terly futile to invest money withopt having hav-ing this point passed upon competently. One should go no further until he is sure he is right on this point. Second Certainty of interest return. Thousands of Investors are misled by vain promises, with distressing results. Third Availability of invested funds in case of an emergency. Too many find, all too late, thai they ar- in possession of secniitif'S for which there is no market, whi h no bank w ill accept as collateral, and which the promoter who sold them refuses r is unaljlo to redeem. A point which is often rlaced first, but really belnnus !asi. Is the Interest rate. As the interest rate rises, security, interest niurn ami ava liability usually recede, often to tiie vanishing point. l'o not lake chances with your money. An unusually high reiurn for a short time will nut compensate you for the loss of your principal. A safe rub: to follow in choosing an Investment is to po to your banker and Inquire what proportion of its fuce value he would loan upon it as security. Print stern critics of c .Ihi t .-ra 1, th officers or loan committee of our bank can give you a pretty good idea of the degree oi safety, convertibility and a a I lability the proposed Invct.tnient possess1. A saving bank account itself offers ;ir Ideal Investment. It has the c-arriina features .nf security of principal, certainly certain-ly of interest return n nd aval lability ir un emergency. It has an additional f-a lure which i; often denied t lie Investor in secui i ties namely the possibility of eonlributitu small, odd amounts, and Immediately rein re-in vesting Interest returns bv adding thorn automatiealtv to the pnixlpal. T. D. MAC GKKGOIt.