Salt Lake Telegram | 1923-07-15 | Page 33 | Investments Vs Speculations

INVESTMENTS vs. SPECULATIONS Purpose of Bond Issue J$ Often a Part of the Title; Several Sev-eral Classifications of This Nature Are -- Outlined and Explained IT " 5 Tri" J! THB twa prooa4fn dvrttelaa dealt with tha- tltlaa of bond iaauaa and anamaratad tho piinolpal tltlaa which Indicate tho character of tho aocurliy. Tho purpoao of tha laauo ta often a part of tho lit la of tho bond. Un4r Ihlo claaalflcatloo wo find: Rafondinf Bonda. which are laauod to moet tho payment of a for-mar for-mar laaua of bxmdo of not aa. Tho practloa of refunding ta common imonf Individual a, corporation a, munlctpaUtlao and fovvriimenta. Tha man who haa a mortcaco on hla farm or houaa oftan fin da It neceaaary, when tho loan la due. to obtain a now loan In ordar to pay off tho old ona. Ho "refunda" tho loan. In tho caao of a corporation, tha original nortffaffo loan would uaualljr ba nproaehtad by a bond laaua, and tho now loan would bo "Refund In Mortfaga" laaua- Tho United Utataa covarnment rocantly laauad treaaury no tea (or bonda) to refund tha balance of tho 4 per ont Victory no tea which matured May 20th, thla yoar. . Funding Bonda ara taaued to unify or con aol I data unfunded debt, auch aa bank loana. Informal note, acrtp, warranto, ate. Thla term la ordinarily uaad In municipal financing;, where It la found; (hat tha floating float-ing debt cannot ba paid In a raaeonablo time out of current roronuaa and long-term bonda are aa oconomy. Adjuetmant ftenda ara euatomarlly Ibaued to adjuat tho affair of a corporation which haa boon In financial difficulties i KMtonalcn Bond may Indicate one of two thlnga an laaua to pro-rldo pro-rldo funda with which to extend a corporation 'a property, or a bond on .which tho timo of payment haa boen e tended, Honda ft tha latter clnaa aro aomatlmaa called "Renewal Bonda" or "Continued Bonda." Whan bonda aro thua extended, tha term of tha oxtenelon aro often atampad or printed on tha old bonda. Sometlmea, a van. now cert 1 flea fl-ea ta aro laauad. Tho object of extending tha tiino of payment may be to allow tho corporation to await a mora propitlouo tlmo to refund. Tba pnrtlra.of ay leading, aalhaa than eefandmgi to bieati1, no or matter of oconomy. It can, of coureevbo dono only with th conoent of tha bondholdera. Waterworka Bonda aro taaued by eitlee or ether municipal! tleo to flnanco tba conet ruction. Improvement or malrttananco of water aya-tema. aya-tema. Other municipal -bond title uaually atato th purpoao of tho laaue. auch aa road bonda. paring bonda, eldewalk bonda, lighting bonda. newer bonda, drainage bonda, etc Th name la the caeea are oaaiiy undoratood. Interim Bond ara temporary certificate given to pure haa r awaiting tha execution of tho parraanent bonds. A atatad before. It la not tho Intention to cover every poaalbl bond tide, but only thoea tn moet general uee. Th above are th principal phrase uaed In bond tltlaa to Indlcato th purpoao or th faau. and are often found in conjunction with other phraao Indicating tho character of th outity, or other factor. Next week' article will deal with classifications relating to eondl- tlona attend n g pa y men t.