Financial Advertising

ONE of the distinctive features of this magazine is its financial advertisements—announcements of banks and investment houses.

Certain daily newspapers are distinguished their field as leaders in financial advertising, but this magazine holds a quite individual position, for while a local newspaper’s advertisements are mainly of its own city’s banks and bond houses and represents usually only one financial market, this magazine contains advertisements of commercial and investment bankers in a number cities, and thus represents a national financial market. Our readers find enterprising banks in New York, Cleveland, New Orleans, Baltimore, and Boston offering their various services; also members of the Investment Bankers Association of America in a dozen cities making suggestions along the line of seasoned investments; members of the New York Stock Exchange offering their services in the buying and selling of high-grade listed stocks and bonds; also, leading specialists in several cities in the field of real estate mortgage bonds; and some of the largest public utility organizations, whose securities occupy such prominent place among investments; as well as certain statistical concerns, whose technical advice and information are of great value.

This shows how broad is the opportunity today for the selection of one’s investments and suggests how limited it was only a few years ago. Then, United States Government and railroad bonds and local mortgages were the mainstays of investment. Interest rates were low. The need for money in other fields of endeavor, speeded up by the World War, brought other securities to the market-place competing for money. Interest rates rose and there came a condition of real competition among bankers and their securities for the funds of the people.

Today, we have the embarrassment of riches. It is now a matter of searching around for particular investments. No doubt about the quantity or variety. Investors seek diversification among United States and foreign government bonds; railroad bonds and stocks; municipal bonds; industrial securities; among public utilities in leading companies and in holding and operating organizations; in real estate mortgage bonds and notes; and in the newest element, investment trusts. Investors surely cannot say that there is not enough to choose from. Even each particular field in itself offers opportunity for diversification of holdings. In “governments ” one can scatter one’s investments throughout North America, South America, Europe, Asia, and even out to Australia. In municipals, one can buy bonds representing every section of the United States. In public utilities, there is even a wider opportunity for dividing one’s risks; and in real estate bonds, offerings in a dozen States await one’s examination. Thus, one can take one’s choice in diversification and do well whether among various fields or in a single field of investment.

There is also this difference in today’s investment and banking business as compared with a generation ago; It is much easier to secure reliable information and advice. There is a literature on the subject, including ably-written and easilyread books, and in the very largest banks and bond houses, as well as in smaller ones, there are always competent men ready and willing to consult with visitors, just as their correspondence departments are prepared to advise with and to handle the investment problems of investors who maxlive near or far, but who do not have the opportunity of going to the offices.

Banks and investment houses which are accepted as advertisers in this magazine are recommended to our readers.

No. 2 in this series will be “How To Buy Investments”