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business cannot help but feel the effects. If we look upon the United States as a business enterprise with fifty good customers, and if the fifteen best customers suddenly stop buying, we can understand the results. If we appreciate that they have stopped buying because they have no money, we can understand how joy. fully we shall welcome indications of an improvement in their financial standing which will bring them back to us as buyers once more.

The reduction in the discount and rediscount rates is an indication that cash is becoming more plentiful. Money is only a commodity, after all; when it is scarce, it brings a high price, just as potatoes do when they are scarce; when it is in abundant supply, its price goes down. Now as money represents capital, and business is dependent upon capital, the supply of money and good or bad business are directly related to each other. This being so, it is easy to see that the man who has money to loan when money is scarce is going to get more for it at such a time than when it is not so strongly in demand.

During the past year or two corporations and governments borrowing money have had to pay extremely high interest rates to the people who have loaned it to them. The lender has naturally benefited, and the fact that money has been worth more than is normally the case has reacted to his advantage. A year ago high-grade domestic issues carried 7 per cent coupons, while at the present time new issues of this class bear coupons paying 62 per cent and 6 per cent. The trend of interest rates is plainly downward. For instance, the Pennsylvania, New York Central, Northwestern, and other railway systems sold securities a year ago with 7 per cent coupons; recently the Pennsylvania and Northwestern have issued bonds with 61⁄2 per cent coupons. The Standard Oil bonds had 7 per cent coupons a year ago; this year a new issue has 6% per cent coupons. The Louisville and Nashville sold an issue of equipment notes not long ago carrying 6 per cent coupons. It is entirely probable that interest rates will continue to show a downward trend. They may not get down as far as they did twenty or twenty-five years ago, when high-grade bonds were issued at 4 per cent, but it is likely that they will decline from present levels.

In other words, if the trend is downward, as most people think it is, the bonds sold a year ago were on a more attractive basis from the investor's standpoint than those offered at present. Those offered at present are more attractive perhaps than will be the case a year from now. The supposition is, therefore, that now is the time to take advantage of the high interest rates.

There is another phase of the matter which is also worth considering. Many of the corporations which were obliged to do financing when interest rates were highest figured that the conditions obtaining at that time were only temporary; in order to protect themselves, they had incorporated in the indentures securing their bonds a provision that on due notice the bonds might be called for

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HE modern trust company is authorized

THE

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redemption and paid off. words, they planned that in case interest rates came down they would be in a position to retire their bonds outstanding at high rates and issue new ones at the prevailing lower rates. Foresight of this kind is commendable and indicates sound business sense. But what of the man who has bought these bonds? He has invested his money on favorable terms and expects no doubt to enjoy the high return on his money for years to come, until the bond he owns falls due. Suppose his bond is called.

If his bond is called, he will get face value for it of course, so that he is not out of pocket so far as his principal is concerned. But what about his interest? In all probability, he will want to reinvest it; but will he be able to do so as advantageously three or four or five years from now as is possible at the present time? Most investment bankers think not. In other words, suppose you own a 7 per cent bond for $1,000, due in 1941. You naturally expect that for the next twenty years your income from this investment will be $70 a year. It would be quite a shock probably if four years hence you received notice that your bond had been redeemed and you discovered that 5 per cent was the best return you could get on a safe investment at that time. The difference to you on that one bond would be $20 a year, and over a period of sixteen years that means $320. If the amount involved were $10,000, the difference would be $200 a year, which in itself is the interest on $4,000 at 5 per cent.

How can you guard yourself against such an eventuality as is described above? Why, simply by investing your money in non-callable bonds. Not all of the high-yield issues on the market today contain this redemption feature. If you investigate before you buy and select only those bonds which cannot be called, you can assure yourself of the high yield over a long period of years and snap your fingers at the downward trend in interest rates. Non-callable bonds yielding these high returns may be purchased which do not mature for fifteen or twenty years. It is the part of wisdom for investors to give this kind of bonds their careful consideration.

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An amusing incident in the career of the late Chief Justice White is related in the New York "Times." As a young lawyer he was called upon to defend a man who was accused of stealing a pair of "pants." The man was seated with his legs under a large table, when Mr. White sat down and asked him something about the case. The man was most reticent. Finally the lawyer for the other side called the accused to take the stand. The prisoner turned to Mr. White and said:

"Jedge, I don't want to take the stand."

"Why not?" asked Mr. White. "You're perfectly innocent, aren't you?"

"Yes, sir, I'se perfectly innocent as long as I sit with my feet under dis table, but if I get up on the stand-oh Lord, Jedge, the trouble is I'se got them pants on!"

The oldest living college alumnus in America is said to be Mr. Washington Bissell, of Great Barrington, Massachusetts, who was born April 17, 1820, and was graduated from Union College in 1846. A newspaper interviewer declares that "at 101 he still has a full, carrying, resonant voice and speaks distinctly." He remembers hearing John Quincy Adams, sixth President of the United States, speak during the campaign of 1825 in Rochester.

Criticising what he calls the crudeness of the British national anthem, the editor of the London "Mercury" says that he recently spent some days with two poets who had settled down to the rewriting of "God Save the King" till they had produced something satisfactory. But after all their struggles they ad to give it up. A national anthem cannot be written to order, it seems. As an example of the subtleties that

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will not "go" in a popular anthem, the TO SUMMER RESORT PROPRIETORS

critic quotes "the most skillfully written

of all new versions, that of the late James Elroy Flecker," whose second

verse ran:

Thou in his suppliant hands

Hast placed such Mighty Lands:
Save thou our King!

As once from golden Skies
Rebels with flaming eyes,
So the King's Enemies

Doom thou and fling.

The graduating class of 1871 of Wilbraham Academy, Massachusetts, we are informed, has maintained personal correspondence between all of its living members for fifty years. In June, 1871, a small mail-bag started on its way from member to member of the class and still continues its journeying, always carry

The Outlook will devote two more early summer issues to special advertising of summer resorts, tours and travel. These are the issues of

June 22 and July 6

WRITE US AT ONCE AND WE WILL BE GLAD TO GIVE YOU COPY SUGGESTIONS

Department of Classified Advertising, THE OUTLOOK COMPANY 381 Fourth Avenue, New York City

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BY THE WAY (Continued)

ing a letter written by each of the classmates. When the mail-bag arrives, the person receiving it reads all the letters, replaces his old one with a new one and sends it on its way to the next address on the mailing list. Should the bag go astray and be sent to the Dead Letter Office, an inside address secures its return to the class secretary, who starts it again on its journey. Of the twenty-four original graduates, ten have died, but all the others keep up this active correspondence.

Two newspapers are to be added to r list of century-old "going" busi

nesses. They are the "Christian Register," of Boston, which reached the one hundredth anniversary of the publication of its first number during April of this year, and the "Republican," of Hudson, New York, which celebrated its centennial September last, after having been published every week regularly during the century.

The "Scientific American" for May 21, 1921, describes the municipal power plant of the town of Longmont, Colorado, one of the principal gateways to Estes Rocky Mountain National Park.' The "Scientific American" says: "The first thought of owning an enterprise of

MEMORIALS in BRONZE

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this kind was stimulated by an article
on "The White Coal of Switzerland' ap-
pearing in a leading weekly ten or
twelve years ago."

The article referred to was written by Frederic C. Howe, and appeared in The Outlook for January 22, 1910. Perhaps the "Scientific American" will forgive us if we add this specific comment to its statement.

The rector was talking to a Sundayschool class, according to the London "Morning Post," and said: "There are still parts of the world where men eat each other. What do you call a man who eats another man?" "Greedy, sir," a small boy answered.

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And a Year's Subscription for

CURRENT HISTORY MAGAZINE

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MAPS: -CURRENT HISTORY MAGAZINE postpaid one year and TWO WALL MAPS published by The New York Times Company-one showing the battle lines in Europe from 1914 to 1918-the other, all the new boundaries of Europe to 1921. Maps and Magazine one year, $4.00.

MAGAZINES:-CURRENT HISTORY MAGAZINE is clubbed with all standard magazines. Select any one; remit the combined subscription price less 15%.

BOOKS: CURRENT HISTORY MAGAZINE one year and any one of the following books, postpaid; price quoted includes book and Magazine one year:

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A FEW ARTICLES OF VITAL INTEREST IN THE JUNE ISSUE OF
CURRENT HISTORY MAGAZINE

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