SAFETY FIRST. -
In many instances, no doubt, there is no need to waste sympathy on those who have suffered losses through the collapse of boom prices. Sheer recklessness and cupidity have been attended with in- evitable consequences. Unfortunately, however, many genuine investors-are attracted by these semi-speculative shares, the hard times in which we live creating a desire for high income and, if possible, capital appreciation, and it is to be feared that even in these enlightened times not a few -unsophisticated investors imagine that to see a share quotation or prospectus in a newspaper is almost a guarantee in itself of the concern having some kind of solidity. It cannot be too strongly impressed upon such investors that the safe harbour of. trustee securities and first-clasS stocks giving a yield-of not more than 5 to 5f per cent. have enduring attractions which may well com- pensate for the lack of feverish excitement attending upon the more speculative purchases. And especially those who arc fond of embarking- their capital in new under- takings will do well to remember that, speaking generally, the safest time to invest along those lines is when markets are dull, for then the chances are that such issues as make' their:appearance arc those- which will stand the scrutiny of a close inspection of the prospectus. Not a few of the sound industrial shares in the market to-day are those which were-floated when the public was only inclined to respond to the very best class of undertaking. Of course, it is quite true that new industries spring' up from time to time carrying with them great possibilitie and where the intending investor has inside information, the investment may prove to be a profitable one. At such times it is usually the few pioneer- companies of these new industries or undertakings which fulfil the promise of the prospectus, but almost invariably they are followed by spurious imitations in which much money
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