THE DETROIT JEWISH CHRONICLE
PAGE SIX
furnish funds for the construction of of the community in which real estate
apartment and store buildings of a first mortgages are made.
staple, standard, renting type, in good
Attractive Features.
districts in Detroit.
Some of the attractive features of a
real estate first mortgage bond are the
Oldest Form of Investment.
A TREATISE ON SAFE
INVESTMENT SECURITIES
BY NATHAN M. GROSS.
regularity of interest dates which are
The real estate mortgage is the old-
The object of investment is the constitute a division of the general
definitely fixed semi-annually. These
earning of income, but its first con- class of investments known as bonds, est form of investment. A mortgage
in battle.
Still an incident that occurred re - .
cently in Algiers indicates that prej-
udices die hard. Thirty Jewish stu-
dents asked for admission to member-
ship in the Association of Students.
Among them were four young men
who had obtained commissioned rank
on the battlefield and several who had
received the Croix de Guerre and are
now incapacitated from wounds re-
ceived on the battlefield. In spite of
this, the Association refused the re-
quest. An appeal made by the Jew-
ish students to the Governor General
ANTISEMITISM IN
remained unanswered. The young
Jews are determined that if they do
In spite of the valorous deeds of Al- not receive satisfaction, they will
gerian Jews in the present sear, the bring the smatter to the notice of the
prejudices against them have not died Minister of Education.
out in that country. While definite
It is of interest to note in this con-
figures are not as yet obtainable, it is
nection that the Association of Uni-
known that twenty-nine received the
versity Students in Paris has as its
Cross of the Legion of Honor, ninety-
president, M. Netter, son of Professor
four the Military Medal, more than
Netter, tnember of the Academy of
eight hundred were mentioned in dis-
Medicine and as one of its vice-presi-
patches and received the Croix de
dents, another Jew, M. Dalsace,
Guerre and one thousand were killed
the principal amount of the mortgage
when dee. As each serial payment of
the principal is made, the ratio of the
security behind the remaining bonds is
ncrersed, as none of the principal is
ever released until the final payment
of the mortgage. All properties
mortgaged as security for bond issues
are amply secured against fire for the
total amount of the owner's liability .
The amount of the fire insurance is
never less than the amount of the
mortgage.
is a definite promise to pay a definite bonds come in coupon form, and all
amount of money at a given time with the investor need do is clip the cou-
pon every six months and deposit it in
a fixed rate of interest, and is secured
the bank, the same as cash. The rate
by a pledge of property.
of income is 6%. The security is 3.1-
First mortgage real estate bonds are
ways ample and this rate, considering
fractional parts of such absolute first
the other desirable features, is liberal.
mortgages and have all the security
The paying of taxes and renewal of
and strong features of the entire
fire insurance is attended to by the
mortgage, with the added advantage
house issuing the bonds. The value
that they are procurable in amounts
of first mortgage real estate bonds as
as low as $50.00.
collateral for temporary loans at
This type of investment appeals so
banks has been proven conclusively,
strongly to the life insurance com-
especially in the trying times of the
panies of America that more of their
past three years. As these bonds are
funds are invested in first mortgages
non-fluctuating in value, one can bor-
if0g003tOx0a0gCutOU0a0.1t0 3t0;0:.0X0XOU. 03t 0a 0tt03t0A031. 0 u.033.0A034 than in any other class of securities— row almost par on them. First mort-
the amount for 1916 being $1,660,000,-
CONDENSED REPORT OF THE
gage bond issues in most cases have
11011. This is 34.46 per cent of their
serial maturities as an additional as-
entire investments.
surance of satisfactory settlement of
First mortgage real estate, bonds
should mature in series, so that they
of Detroit, lilt•higno,
may be purchased to run any conveni-
Al the Clone of nominee. Septemher 12. IDID, no tinned for by the
114 ent period from two to ten years.
lllll orinsioner of the thinking Deonrtment.
This serial feature reduces the indebt-
RESOURCES
edness of the borrower year by year
$5171,2M2.82
Bond., Illorignmen, Lonna and Dineounte
/14.216.••
lug and increases the percentage of se-
Real Emirate. Bennett Oilier. nod Piston..
1,520,444.74
Crush nod 1
curity, which should be ample, behind
•
Member Federal
the remaining bonds.
$9,•115,044.44
sideration is security for principal. and differ from stocks very materially .
The first questions are—"Will my Stocks represent a share in a busi-
money be kept intact?" and, "Is its ness, and are dependent for income
full return assured?" upon the earnings of the company.
The duration of an investment. its To this extent, stocks are speculative.
marketability in case the owner is First mortgage bonds, however, are
compelled to part with it, its taxable- the first and most direct obligation of
ness, the convenience of its form and the owner of a property and are se-
its freedom from incidental detail, its cured by legal pledge of the entire
availability for the immediate employ- property to the owners of the bonds,
ment of funds, and its ability to earn in guarantee of full and prompt pay-
interest upon each day of investment, ment of interest and principal. They
are all factors in its selection. are not speculative like stocks. The
Real estate first mortgage bonds object of the real estate bonds is to
Commonwealth Savings Bank o,
LIABILITIES
0
0
0
$ 250.000.00
97,9)45.0•
11,1127,0511.36
Cap11111 Stock
Morphs.; and Profits
Deposit•
Stability Desired.
People, today, are looking upon the
investment of their motley, with even
greater seriousness than ever before.
No longer is there a disposition to
rl take the slightest chance upon secur-
ities which are not stable and well-
nj protected against shrinkage in value.
0 This is true, not only of men with
101 many thousands to invest but also of
men who are on the eve of investing
their first hundred. And in conse-
quence there is an even greater de-
mand for good first mortgage real es-
tate bonds.
In the past year you have seen se-
curity after security, considered highly
stable in normal times, decline seri-
ously in value. Many a large investor
has awakened to find his evaluation
diminishd alarmingly almost over-
night.
Today, even the most experienced
investor finds it impossible to pierce
the veil of the future and gauge with
accurate eye the conditions that may
arise during the next twelve months.
More than ever before it is the part of
shrewdness to seek investments of
absolute stability that will not shrink
in value.
$9,h45,044.44
OFFICERS'
M. E. GALVIN, Chairman of Board. F. H. TALBOT, Vies-Pres.
A. It. MOORE% Vice-Tres.
J. W. MeCAUSEY, President,
CHAS. J. 11100INS, Cashier.
FRANK WOLF, Vice-Tres.
JOHN A. SEYMOUR, Asst. Cashier.
C. F. !NEIMAN, Vice-Tres.
H. W. JORDAN. Asst. Cashier.
COMFORT A. TYLER. Vivo-Pres.
Lotted Stoles
Mentherst Federal
••
DeposItorY
Reiser% r Hunk
icagoxatomgc.0.0.gogoaraxamyKoNogago.o..0-Kommgmogoil
REPORT OF CONDITION
FIRST e OLD DETROIT
NATIONAL BANK
At the Close of Business September 12. 1919.
RESOURCES
$43,473,461.99
Loans and Discounts
23,412,769.42
United States Bonds and Certificates
9,019,849.06
Other Bonds and Securities
225,000.00
Bank Stock
Federal R
400,000.00
Real Estate
30,000.00
Safe Deposit Vaults
Customers Lability, Letters of Credit and
1,952,148.00
Acceptances
Four Investment Factors.
There are four main factors in a
highly desirable investment: one,
safety; two, income; three, conveni-
ence and advantages over other forms
of investment; and four, the banker
offering the issue.
By analyzing an investment under
these four headings, the comparative
advantages of different offerings may
easily be determined by an investor,
and he can judge for himself how to
invest wisely. The following are some
of the important features of a real es-
tate first mortgage or a real estate
first mortgage bond: What is the ra-
tio of the property value to the
amount of the loan? How is the ap-
praisal determined?
First mortgages should range about
fifty per cent of the 'appraised value
of the property, and should be based
upon definite knowledge of the cost
of the building as well as considera-
tion of the location and the adapta-
bility of the property to its location.
Very often one finds a splendid struc-
ture erected, which is entirely out of
keeping with the other buildings in
the neighborhood, which in most
cases, proves disastrous. The best
real estate mortgages and mortgage
bonds, are those which are secured by
one specific piece of property instead
of several pieces of property. The
genuineness of the title and the pro-
per execution of the mortgage is a
very essential part of any first mort-
gage. Another important feature
which presents itself is the prosperity
CASH RESOURCES
$ 254,311.00
Due from U. S. Treasurer
Due from Federal Reserve Bank '0366,228.72
8,240,634.81
Due from other Banks
5,188,490.67
Cash on Hand
$23,349,665.20
$101,862,893.67
LIABILITIES
$ 5,000,000.00
Capital Stock
2,500,000.00
Surplus Fund
1,575,826.69
Undivided Profits (Net)
339,610.93
Discount Collected but not earned
172,757.64
Interest
and
Taxes
Reserved for
100,000.00
Borrowed Bonds
1,119,400.00
Circulation
Bills Payable and Rediscounts with Federal
8,430,000.00
Reserve Bank
1,961,782.76
Letters of Credit and Acceptances
80,643,515.65
Deposits
$101,862,893.67
OFFICERS
Emery W. Clark. PreMent.
Asst. Cashier
F. P. Chr•stie
Vice-President
Wrn.J Gray
Amt. Cashier
Russell E. Smith
Vice.Preeuent
Wm T. DeGraff
Asst. Cashier
lames A Wilson
Vice-President
Frank G. Smith
Asst. Cashier
Byron W. Clete
Edward C. Mahler..Vim-President
Henry I Bridgman...Asst. Cashier
Vice-President
John H. Hart
Asst. Cashier
C. H. Wager
Walter G Nicho'sen
Ant. Cashier
A. W. T. Meyers
....Vi• - e-Prnident and Cashier
L. F. Mere.Mgr. Foreign Exchange
W. A. McWhinney...Asst. Cashier
DIRECTORS
Eugene W. Lewis
Gilbert W Lee
Philip H. McMillan
Thomas Neal
W. C. Rands
E. D. S•air
Joseph B. Schlotman
Etrederic B. Stevens
Elliott G. Stevenson
John H. Emmert
Merton E. Farr
J. S. Farrand. Jr.
lamm H. Flinn
beater M. Ferry, Jr.
5 B. Ford
Ralph Giichriet
Wm. J. Gray
Lewis H. Jones
j. Burgess Book
Lawrenre D Buhl
Roy D. Chapin
Emory W Clark
Jam, Craig. Jr.
Rtandird T. Crapo
Joreih J. Crowley
lime. E. Davidson
Clinton G. Edger
R
ALGERIA.
United States
Depository
Bank
THE PEOPLES
STATE BAN K
STATEMENT OF CONDITION
At the close of business, Sept. 12, 1919
RESOURCES
$38,665,165.71
.
.
.
Loans and Discounts .
19,531,870.57
Mortgages
11,476,350.42
Bonds
United States Government Certificates
26,284,000.00
$95,957,386.70
.
and Liberty Loan Bonds .
195,000.00
Stock in Federal Reserve Bank
1,250,000.00
. . .
Banking House and Branch Buildings
Customers' Liability on Acceptances, Letters of Credit
997,663.66
and Travelers' Checks
20,841,687.22
.
Cash on hand and due from banks
$119,241,737.58
LIABILITIES
2 500 000 00
4,000,000.00
894,670.05
1,003,363.66
9,000,000.00
Capital Stock
Surplus Fund
Undivided Profits
Acceptances, Letters of Credit and Travelers' Checks
. • •
Bills Payable Federal Reserve Bank .
Secured by U. S. Certificates.
$51,455,389.11
Commercial Deposits . . • •
7,203,F68.74
Bank Deposits
43,184,746.02
Savings Deposits
101,843,703.87
$119,241,737.58
OFFICERS
JAMES T. KEENA, Chairman of the Board
CHARLES H. AYERS, Ambient Cashier
JOHN W. STALEY, President
ENOCH SMITH, Assistant Cashier
F. A. SCHULTE, Vice-President
A. H. MOODY, Assistant Cashier
JOHN R. BODDE, Vice-President
D. E. LEUTY, Assistant Csahler
H. P. BORGMAN, Vice-President
WILLIAM BRAASCH, Assistant Cashier
R. W. SMYLIE, Vice-President
CARROLL H. LAWSON, Bond Officer
AUSTIN E. WING. Assistant to President
GEORGE T. COURTNEY, Auditor
R. T. CUDMORE, Cuhler
ROD P. ERASER, Mgr. Foreign Department
DIRECTORS
RUSSELL A. ALGER
GEORGE H. BARBOUR
W. T. BARBOUR
JOHN R. BODDE
H. P. BORGMAN
H. M. CAMPBELL
B. S. COLBURN
C. A. DU CHARME JAMES T. McMILLAN HUGO SCHERER
F. A. SCHULTE
JEREMIAH DWYER R. S. MASON
ANGUS SMITH
FRANK J. HECKER FRED T. MORAN
R. W. SMYLIE
FRED W. HODGES M. J. MURPHY
JOHN W. STALEY
W. HOWIE MUIR
J. C. HUTCHINS
TRUMAN IL NEWBERRY HOMER WARREN
JAMES T. KEENA
HENRY RUSSEL
H. B. LEDYARD
Nineteen Branches Conveniently Located
Wayne County and Home Savings Bank
DETROIT, MICHIGAN
Organized 1871
Member Federal Reserve Bank
CONDENSED STATEMENT
At the Close of Business, September 12, 1919
Grand River
Boulevard Branch
Woodward and
Forest Ave
Branch.
V1
zysm.41
'
4'a4'1' Cor. Woodw,i an
Main Office,
Majestic Building.
Michigan Avenues.
Condensed Statement Showing
Business, September 12th, 1919
RESOURCES
$ 3,338,549.20
Loans and Discounts
8,294,872.03
Bonds and Mortgages
U. S. Bonds and Certificates of Indebtedness 1,941,400.00
18,000.00
Federal Reserve Bank Stock
588.55
Overdrafts
255 ,890.03
Real Estate and Banking Houses
2,795,400.68
Cash on hand and due from other Banks
LIABILITIES
Capital Stock
Surplus and Undivided Profits
Commercial Deposits
Savings Deposits
Bank.
Member Federal R
United States Depository.
tr.
Ott,
$78,351,291.13
Total
The Financial Strength
Of this Institution at the Close of
RESOURCES
$20,058,140.94
Real Estate First Mortgages
5,534,256.22
Bonds
9,824,029.37
Collateral Loans
12,313,159.12
Loans and Discounts
1,571,834.00
Banking House and Branches
210,000.00
Stock of Federal Reserve Bank
U. S. Government Certificates due within six months 10,887,000.00
7,433,526.71
U. S. Liberty Bonds
10,519,344.77
Cash on Hand and in Banks
Fort St and Janet
Avenue Branch
LIABILITIES
Capital Stock
Surplus Fund
Undivided Profits
Bills Payable with Federal Reserve Bank
Commercial Deposits
Postal Savings Deposits
Savings Deposits
$78,351,291.13
Total
$ 500,000.00
478,432.29
4,264,737.42
11,401,630.78
$ 3,000,000.00
4,000,000.00
547,560.94
3,500,000.00
20,863,997.06
1,003,791.63
45,435,941.50
OFFICERS
Charles F. Collins. Chairman.
Hugh
Burns, Ass't Cashier.
Julius H. Hams. President
Wm. . MtClenahen, Asit Cashier,
George Wiley, Vice-President.
Lyman L. Rover, Aes't Cmhier.
W. V. Moore, Vice-President.
Geo. C. Johnston, Ass't Cashier.
Wm. S. Green, Vice-President
Chas. H. Northrop, Aset Cashier.
Edwin J. Eckert, Vice.President
Geo. F. Buhrer, but Cashier.
Arthur E. Loch, Vice-President.
Frank A. Grosfield. Ass's Cashier.
Rupert Pletsch. Ass', to President.
eo. A. Burns, Aset Cashier.
Geo. H. Johnstone, Cashier.
Geo. J. Pipper, ..editor.
16,64471015741
DIRECTORS:
EDGAR REXFORD
WM. . HOLLIDAY
H ARRY J. FOX
CHAS.P P. COLLINS
SAMUEL T. DOUGLAS F. H. MACPHERSON
F. G. CLAYTON
ALEX. I. McLEOD
A. A. Albrecht
Lem. W. Bowen
Cla once M. Burton
Leo M. Butrel
Chas F Coihns
Frank H. Creel
John M. Donaldson
DIRECTORS
Wm. S. Green
Fred Guenther
Julius H. Hams
James S. Holden
Chas. C. Jenks
James C. McGregor
John A. Mercier
TWENTY OFFICES
s• — ,,,,ewillIM1111111111111
IN DETROIT
W. V. Moore
Ralph Phelps
U. Grant Rare
S. Y. Seyburn
A. L. Stephens
Orla It Taylor
George Wiley