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