Produced by Julia Neufeld and the Online Distributed Proofreading Team at https://www.pgdp.net (This file was produced from images generously made available by The Internet Archive/American Libraries.) HOW TO INVEST MONEY BY GEORGE GARR HENRY _Vice-President Guaranty Trust Company, of New York_ [Illustration] FUNK & WAGNALLS COMPANY NEW YORK AND LONDON 1908 COPYRIGHT, 1908, BY FUNK & WAGNALLS COMPANY [_Printed in the United States of America_] Published April, 1908 CONTENTS PAGE PREFACE 5 I. GENERAL PRINCIPLES OF INVESTMENT 7 II. RAILROAD MORTGAGE BONDS 23 III. RAILROAD EQUIPMENT BONDS 40 IV. REAL-ESTATE MORTGAGES 51 V. INDUSTRIAL BONDS 63 VI. PUBLIC-UTILITY BONDS 76 VII. MUNICIPAL BONDS 91 VIII. STOCKS 100 IX. MARKET MOVEMENTS OF SECURITIES 108 PREFACE The aim of this book is to present in clear form the simple principles of investment, and to afford the reader a working knowledge of the various classes of securities which are available as investments and their relative adaptability to different needs. The book is an outgrowth of the writer's personal experience as an investment banker. Most of the matter which is presented has appeared in the pages of "System" Magazine, through the courtesy of whose editors it is now rearranged and consolidated for publication in book form. G. G. H. HOW TO INVEST MONEY I GENERAL PRINCIPLES OF INVESTMENT With the immense increase in wealth in the United States during the last decade and its more general distribution, the problem of investment has assumed correspondingly greater importance. As long as the average business man was an habitual borrower of money and possest no private fortune outside of his interest in his business, he was not greatly concerned with investment problems. The surplus wealth of the country for a long time was in the hands of financial institutions and a few wealthy capitalists. These men, the officers and directors of banks, savings-banks, and insurance companies, and the possessors of hereditary wealth, were thoroughly equipped by training and experience for the solving of investment problems and needed no help in the disposition of the funds under their control. During the last ten years, however, these conditions have been greatly altered. The number of business men to-day in possession of funds in excess of their private wants and business requirements is far greater than it was ten years ago, and is constantly increasing. These men are confronted with a real investment problem.