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American Railways
Automatic Re-investment Of Dividends
Colonial Government Securities
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Indian Railway Stocks
Table Of Interest On Investments Sample
London Banks And Banking
Loans To Corporations And Counties Of The United Kingdom
Railways
Terminable Annuities
Mortgages
Insurance Companies
The Stock Exchange
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Loans To Corporations And Counties Of The United Kingdom
THESE are loans raised by boroughs and coun-
ties, and other authorities in this country, for
local purposes, upon the security of the rates or
other assured income. Before the money is
borrowed the consent of the Local Government
Board is necessary to make the loan legal, and
evidence is required that the resources of the
borrowers are ample to meet their obligations.
On most of these stocks the rate of interest is
3 per cent., though there are some few at 3 1/2 per
cent. The principal is redeemable at fixed dates,
or by a sinking fund, that is, by setting aside so
much a year to pay off the loan at a fixed time,
or as opportunity offers. For instance, in times
when money is scarce or dear there is a proba-
bility of these stocks falling below their par
value, and the Sinking Fund is then used to buy
the stock in the market. Thus the Corporation
may be able in effect to pay off a loan of £100
for £90 or £95, whatever the price may be, and
so gain the amount of the difference.
Investments in securities of this kind may be
considered absolutely safe, although certainly
there is the contingent risk of a town, after bor-
rowing up to its full powers, drifting into decay
from the loss of its staple trade, and so finding
itself unable to meet its obligations. The in-
vestor should, however, find no difficulty in
discovering where such a contingency would be
possible.
The interest on these loans is usually sent
direct to the stock-holders, by means of an order
on a bank.
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Informational