(Financial Situation, continued from page 73) ordinary trade exchanges and partly through he German government's $200,000,000 exteral loan of October, $110,000,000 of which was laced in the United States. These credits vere redeemable in gold. Last November the Reichsbank began to ship the proceeds to Berin, for use in a home reserve against the new It had taken $20,000,000 German currency. before the year was over; this happening while New York exchange on Germany, measured in the new reichsmark, was nominally at par with gold but not at the technical "gold export point," and when a very large "import surplus" existed in German foreign trade. not the only foreign Our Gold and the Europe against their notes the item "gold held abroad" In other words, the machinery for "gold redistribution" is in perfectly plain sight, as it was when the United States government, with BUT the Reichsbank was nold credit at New sterling exchange well above the "gold import bank of issue with a York or elsewhere. The national banks of The facts-secured in time — point," imported upward of $25,000,000 gold from Europe in 1877 and 1878 to prepare for resumption of specie payments. often save losses in investments Every investor at times needs reliable, unbiassed information regarding securities. In recognition of this fact, Scribner's INVESTOR'S SERVICE BUREAU SCRIBNER'S MAGAZINE - 597 FIFTH AVENUE, NEW YORK CITY INSURED MORTGAGE BONDS A National Security 6% BACKED BY AMERICAN HOMES Insured Mortgage Bonds are not only the ideal form of security for individual investors, A SERVICE IN HOME OWNERSHIP. Insured Mortgage Bonds are the last word in the construction of a type of Bond which 1.-Guaranteed principal and interest by the Mortgage Security Corporation of America. Insured Mortgage Bonds are distributed to investors only through responsible investment Richmond Investment Bankers since 1871 Washington to whom orders for Bonds as well as inquiries for our Booklet, "Insured Mortgage Bonds, MORTGAGE SECURITY CORPORATION OF AMERICA; NORFOLK, VIRGINIA INSURED In writing to advertisers please mention SCRIBNER'S MAGAZINE 75 Service Bureau Excerpts from Questions and Answers Upon request this Bureau of Scribner's Magazine, which is maintained for the service of subscribers, will furnish information concerning investments. AUSTRIAN BONDS Q. Will you be good enough to give me information about the following Austrian Bonds issued in crowns: Vienna Water Power 5% (American issue), the Austrian Federal 6%, Vienna Loan 5% and 7%, and shares of the British-Austrian Bank Limited. A. We are in receipt of your good letter of the 12th, addressed to our Investor's Service Bureau, requesting information regarding the following Austrian Bond issues: Vienna Water Power 5% First Mortgage Bonds (American issue.) Austrian Government 6% 6-Year Notes. Austrian Government 6% Guaranteed Sterling. Information regarding the Vienna 7% issue is not available as we write. We shall endeavor to obtain information regarding this loan and will advise you later. Of the bonds above-mentioned, we would rank them in safety as follows: We are enclosing with this letter information regarding these issues. Vienna Water Power Company 5% First Mortgage Bonds. Authorized and issued: Kr. 6,000,000. Present issue: Kr. 1,000,000,000 in denominations of Kr. 250,000. The proceeds of this loan will be used to continue the construction of the hydro-electric power works and storage plants on the River Ybbs, an affluent of the Danube. The development of this great natural resource will automatically free Vienna from dependence upon a large portion of its coal and oil imports, provide its industry and household consumers with cheap and effective power and light, and will be a further step toward the resumption of sound economic conditions of this great city. Maturing coupons can be presented for payment within six years from date of maturity; maturing certificates within thirty years from date of maturity. The bonds are secured by a first lien on all the assets of the Company, including its land and buildings at the Ybbsworks. Apart from this, however, the entire resources of the Municipality of Vienna are pledged as security for the loan. Principal and interest are free from all present and future Austrian taxes. Austrian Government Six-Year 6% Notes, 1921-1927. Dated January 1, 1921. Due January 1, 1927. Coupon bonds of Kr. 10,000, 50,000, and 100,000. Repayable at par January 1, 1927, but holders have the right to demand repayment at par on the first of any month, upon giving three months' notice. Repayment upon such demand after January 1, 1922, entitles the holder to a premium of one-tenth of one per cent of the face amount of his bonds for every three months elapsed since date of issue. All payments in kronen at Vienna, free of all taxes. 76 Vienna 5% Loan of 1921. Issued and outstanding-1,000,000,000 kronen. Dated March 1, 1921. Due March 1, 1981. Interest March 1 and September 1. Not redeemable for ten years from date of issue. Re able by annual drawings on March 1 of each year, beginn March 1, 1931, for payment six months later. Draw may be increased at option of the city. Principal and in terest exempt from stamp tax and municipal taxes, and te city of Vienna agrees to pay the Austrian Government t "Rentensteuer" present and future. Denominations 1.000 2,000, 5,000, and 10,000 kronen. The bonds are printed English, French, and German: Direct obligation of the city of Vienna, and issued unde Resolution of January 18, 1921. Offered for subscription in Austria at 9614. A portion o this issue offered in the United States in July and Aug 1921, by Morton Lachenbruch & Co., New York, and othe at $16.50 per 10,000 kronen bond. Austrian Government 6% Guaranteed Sterling Boar Issue of 14,000,000 kronen. Bonds to the nominal value of 3,118,900 kronen are beint issued to H. M. Government in satisfaction of sums due them. Payment of principal and interest of this loan is a diret obligation of the Republic of Austria, secured by 1. A general bond of the government. Chairman of financial committee, League of Nations, appointe Trustee to be succeeded later by three trustees nominated by council of League. 2. A first charge on gross receipts of customs dutes and tobacco monopoly of Austrian State. Q. I would appreciate your advice in regard to some bonds that are causing me a good deal of uneasiness-Rio de Janeiro 8s of 1947 for which I paid 103-would you advise holding this bond or switching into some other bond with better prospects and high rating. Would my position be any stronger if I change into the Department of the Seine 78, 1942-that s would I have more safety for my capital? Or can you advise any better switch? I also have Sinclair Co solidated Oil 7s, 1937, for which I paid 98%, and ter shares of Sinclair Stock for which I paid 31. Other oils seem to be starting up but Sinclair is getting worse -would rather lose a little than all my principal. Do you advise the purchase of securities at this time or do you think funds should be kept liquid? A. We are in receipt of your letter of recent date, re In writing to advertisers please mention SCRIBNER'S MAGAZINE how holding. The Rio de Janeiro 8s of 1947 sold on June 30 at 97%. This is the highest price at which the bonds have sold during 1924-the lowest price being 87 recorded on January 2. We believe the bonds are intrinsically sound, and while we favor such bonds as Kingdom of Denmark 8s, Republic of Uruguay 8s, or Kingdom of Norway 8s, we do not believe that the added factor of safety would compensate you for the loss of principal entailed in switching from one to the other. We do not regard the Department of the Seine 7s of 1942 as possessing superior safety to the Rio 8s. It is possible that the late developments in European affairs may have a good sentimental effect on the French Government and state issues, but this is purely a speculative feature. You also ask our opinion regarding Sinclair Consolidated Oil 7s of 1937 and Sinclair stock. The entire list of oil stocks has been comparatively sluggish during the past month, in a tremendously active market. Some financial authorities do not look for sensational advances among the oils, but rather advances in line with the gradual improvement that is developing in the oil industry. For the year ended December 31, 1923, the Sinclair Consolidated Oil Company showed net earnings of $13,436,504. After the payment of taxes, fixed charges, interest, depreciation, and dividends, the Company showed a deficit of $11,831,220 for the year. The first six months of 1924, ending June 30, show the company's earnings to be running far ahead of 1923, and the outlook for the Company is much more encouraging. If you wish to change your Sinclair holdings to some other oil issue, we suggest one of the following: Vacuum Oil Company. Tidewater Oil Company. Shell Union Oil Corp. Pacific Oil Company. The present is probably as good a time as any to buy oil stocks in anticipation of a gradual betterment. No immediate boom is anticipated and the industry requires considerable readjustment before one can occur, but we believe that a decided turn for the better is due. The majority of the active stocks have had a steady and well-sustained rise for more than a month, and it is possible that there will be some recessions from the high figures. As we have said in the above paragraphs, we believe that good oil stocks-which have not shown any noticeable advances offer as good an opportunity as any for a long pull investment. DIVERSIFIED INVESTMENTS Q. Will you give your opinion of the securities listed below and held for permanent investment? Also suggestions for adding about $3,000 to this group. I am considering several preferred stocks such as Jones & Laughlin, U. S. Steel, Railway Steel Spring, American Tobacco, National Lead Company. I am putting aside about $275 monthly for investment. You may think this group would stand some good common stock for a high yield. The money on hand is drawing 32%, computed monthly, in a savings-bank. Progressive Men of Affairs are now planning to have their CHARLES SCRIBNER'S SONS In writing to advertisers please mention SCRIBNER'S MAGAZINE 77 12 eiro 8s of BATT price at wh price being are intrinsic gdom of De of Norway afety would I in switching Department safety to the Ta that the late good set ate issues, t and Sinchir stat st. of oil studs past month authoris the oil, t vement th tended De Company ment of dends, the he year. The w the cm 3, and the Aging a to chang |