Show AN investment discussing the investment situation roger W B abson maibes makes the following statement dividend cuts lave have be como an everyday occurrence and promise to continue at their present rate tor for at least another year last months payments on american industrial stocks co common ninion and preferred were less than in november 1919 and less than in november last year this represents a loss of per cent or nearly one fourth compared with 1919 and per cent or ane one sixth less than last year there Is nothing particularly a about such a development ait is but one of the characteristics of the period of the depression in every business cycle the trouble lies in ili the fact that the general investing public does not seem to have been aware oi of this fact act As I 1 igo go about the die country I 1 am appalled by lists sh own me not only by the widow and untrained youth but by the man who is keen in ili ills his own business their lists of investments are generally overloaded over loaded with stocks which at times pay dividends they have counted on these as income and are arc very seriously embarrassed as a result of 0 the cut in fit dividends their unfortunate position is due to their disregard of a very fundamental point stocks have an essential place in our financial structure without the commitment ot of some funds to the als risks ks of production transportation and merchandising buying goods with the hope of selling tor for profit business could not be done the purchaser of common and preferred stocks stock Is furnishing money for these purposes hla his stock certificate establishes tab lishes no obligation in his favor but simply certifies that lie he has a proportionate onate interest in ili the business lie iio is a partner in the broader sense of the word and subjects himself to the risks of proprietorship and takes I 1 lie he profits were their are any one should not enter into this position without realizing that lie is speculating investment on oil tile the other hand is placing your money for a definite income the man mail who buys bonds or notes is a landlord in the broad sense of the term I 1 he le has loaned mone money to the concern and lias bas a mortgage on a part of its royal real property he must be paid his return whether the business makes a profit or not and can foreclose and sell its assets to reimburse himself tor for his original investment it it Is necessary to take such steps his money is loaned tor for a definite period it must be paid back as money at a fixed date and tile the agreed rental must be rented at stated verlois ierio ds in the meantime the market value ot of good bonds rises in ili proportion as its income will buy more to tood od and clothes not as a particular line of business becomes more or less profitable A steady and assured income of 0 a prie pm determined amount therefore takes tile the place of 0 the uncertain profit or profits due the stockholder too many persons who want an all continued on page 2 column 2 STOCKS yot NOT AN investment continued from first page investment who believe they have an investment are h holding on oil to common and preferred stocks from which income has ceased and which tor for the present may not even be a good gamble some lines of industry have been thoroughly liquidated both internally and market wise their stocks today should be bought but bought as a speculation by those who realize that they are speculating for the near future and tor for years to come the conservatively ively financed efficiently operated I 1 business will vill show a profit and will pay a profit to their stockholders their next door neighbors however may be headed tor for the she riffa sale or scrap heap and dividend cuts will continue to be present decide whether you want to invest tor for income or speculate lor for profit for investment buy sound bonds tor for speculation buy a broad list of stocks it if you are not following thi this 8 basic principal tor for placing your money set your house in order at once y you oil will make more by rearranging your securities now than waiting tor for a chance to get out whole the Babson chart reflects a very satisfactory seasonal rise in general business last weeks point 17 per cent below normal lias has been bettered by 3 per cent general business today is 14 per cent below normal all publications and radio rights strictly reserved |