Greenebaum Safeguards Protect Your Investments Investments results. During the first six months of 1921 the Trade standing decrease of 1,400,000,000 francs in the value of exports also, with its previous all but unimaginable "import surplus" actually changed to a surplus of exports. This immense decrease in the money value of goods purchased from foreign producers no doubt resulted partly from the fall of prices and partly from increasing facilities for home production in countries which, like France, were getting their shattered industries at work again. But even in quantity the goods imported by France in the first half of 1921 decreased 6,000,000 tons, or nearly 30 per cent from the year before, and the fact that approx imately 4,000,000 tons of that total decrease was in raw materials of manufacture certainly indicated that even home production of many Peace of mind regarding investments should be finished goods was falling off. the desire of every investor. Many thousands of careful investors have found BUT however plain the case of these recent true investment safety in Greenebaum Safe- of South European belligerent states may be in the sudden collapse of buying power, the circumstances do not wholly explain the even more violent commercial collapse of such formerly neutral markets as those of the South American republics. Some The Case very striking experiences of this America past summer taught our business community that the problem of South American trade and South American commercial relations was in some respects the most formidable of all the problems with which our bankers and merchants were confronted in the great reaction of 1920. The story is an extraordinary one, though not wholly new; for something like it was told when the crumbling Argentine speculation dragged down Baring Brothers in London in 1890, and when the rush of speculating British merchants to exploit what they called the "markets for tropical production," when the long war blockade was begun after 1914, ended in a dismal chapter of commercial ruin. There had been many indications, as early as 1916, that the war was enriching not only such powerful nations as Japan and the United States, which were partly or wholly removed from the war's exhausting economic strain, but other non-European producers of food and raw materials, such as Brazil, Chile, Cuba, and the Argentine Republic. Their natural products, (Financial Situation, continued on page 63) The First Consideration in Making an Investment AFETY of principal should always be the foremost and guiding consideration in judging the respective merits of the investment offerings. Securities offered to the investing public by the Old Colony Trust Company must be unquestionably sound. Ordinary prudence and the nature of our business demand this. In addition, they must, of course, insure a satisfactory return to their permanent holders. This institution, through its Bond Department, offers an unusually complete service to investors. In every case, the special requirements of each individual investor are given thorough and unbiased consideration before a recommendation is made for the purchase or sale of securities. Investments made through our Bond Department are systematically "followed through", and the owner is duly informed of routine or special matters pertaining in any way to them. An exceptionally complete Financial Library and a well equipped Statistical Department are operated in connection with the Bond Department, and their facilities are always available to its customers. Private wires, affording direct communication at all times with the New York financial markets, are maintained by this company. We shall be pleased to send you, upon request, our Investment OLD COLONY TRUST COMPANY Member of the Federal Reserve System (Financial Situation, continued from page 61) notably grain, were rapidly enhanced in value; their markets recovered quickly from the shock which followed outbreak of war. Some of Some of those countries, Cuba and the Argentine Republic in particular, enlarged beyond all precedent, even in the early years of war, their exports, their imports, and their surplus of exports. In all of them the wealth of the community seemed to be increasing. There was actually one instance, that of Argentina a few months after the armistice, in which a South American market made large loans of credit to the English, French, and Italian governments on condition that the proceeds be spent for products of the country. side world at large, had brought such articles as sugar and coffee to prices four and seven times as high as they had been when the war began. Exports from Argentina in 1919 increased 30 per cent in value over 1918, exports from Cuba 40 per cent. From Brazil they actually doubled. The pleasure resorts of New York and Paris began to grow familiar with the rich Cuban and South American visitors who had come to spend their money with the prodigality of newly made millionaires. Importations into those countries increased after the armistice more rapidly even than their exports; so much so that, in some of them, the actual balance of merchandise trade turned against them. The United States sent to South America in 1919 $140,000,000 more worth of merchandise than the year before, and to Cuba alone $51,000,000 more. Yet all this seemed to be nothing but evidence of immense prosperity. When our government removed the restrictions on gold exports shortly after the armistice, our markets were called upon to ship $90,000,000 gold within a year to the South American markets. Foreign-exchange rates were, in fact, moving steadily in favor of South America, as against even New York. The judgment even of the (Financial Situation, continued on page 65) 1 YEARSINVESTMENT EXPERIENCE SAFEGUARDS OUR CLIENTS INTERESTS ང་ Increase Your Income With "Safety Bonds" "Safety Bonds," issued with a network of A comprehensive description of the American Bond AMERICAN BOND & MORTGAGE American Bond & Mortgage Bldg., Chicago Grand I. pids, Mich. "Building with Bonds" may be 562 Fifth Ave., New York City Davenport, Iowa Rockford, Illinois Sign Below and Mail This Advertisement for Edition Q510 CIVIC THE SCHOOLS Your children attend, the The business of investing in bonds is Assured safety is combined with at- The facts secured in timeoften save losses in investments Every investor at times needs reliable, unbiassed information regarding securities. In recognition of this fact, Scribner's Magazine maintains an Investor's Service Bureau, the purpose of which is to analyze securities and supply current news and up-to-date statistics regarding investments. The personal attention of a conservative investment specialist is given to each inquiry received. For a thorough analysis of an investment a nominal fee is charged amounting to $3.00 for one stock or bond, and $2.00 for each additional security analyzed at the same time. Many of our readers who have utilized this service have commented upon the quality and scope of the ir formation received. If you have an investment problem write to-day. Address inquiries, accompanied by a remittance, to INVESTOR'S SERVICE BUREAU, SCRIBNER'S MAGAZINE, 597 Fifth Avenue, New York City. spread belief that the United States was destined thereafter to dominate the foreign trade of the world, a considerable number of largely capitalized companies were organized to set the machinery at work. Lack of shipping facilities in the later years of war had deferred full access to their markets, but now, apparently, the opportunity could be grasped. Competition to finance the trade and buy up the products of South America became immediately urgent. One of these concerns (of which a great deal was heard again in 1921), itself organized by powerful New York banks and banking-houses, engaged with a capital of $6,500,000 on such a scale that, when the day of reckoning came, upward of $80,000,000 cash had to be found to cover its immediate liabilities. For the reckoning was not long postponed. The original real prosperity of these countries had been prodigiously overexploited on the basis of credits obtained from American banks already loaded with the trade obligations of Europe. South American products were accumulated; sometimes purchased, in advance of production, at prices to which they had been driven by speculators. Lacking, as all these southern countries did, any large reserve of accumulated capital of their own, the whole (Financial Situation, continued on page 67) Seventy Years Experience Has Equipped Knauth, Nachod & Kuhne To serve you in your foreign financial transactions of all kinds. OUR SERVICE Remitting abroad by Money Order, Sight Drafts or Cable Transfers, Making collections of drafts on foreign countries, Making periodical payments to beneficiaries in foreign countries, Collecting inheritances, legacies, bank accounts, etc., in foreign countries, Issuing Commercial Letters of Credit to finance foreign trade. INVESTMENT SECURITIES As members of the New York Stock Exchange we execute orders for There are special features and advantages in K, N & K service which we would FOUNDED 1852 |