The Work of the Bond House

place, we must come to some conclusions regarding the investment qualities we seek in examining the loans submitted for purchase. A careful survey of all possible excellences yields us ten elements for the ideal investment.1 Security of principal. Stability of income (or security of interest). A fair return. Marketability. "I ,, ..... , I Convertibility. Value as collateral. J Tax exemption. Freedom from care. Acceptable duration. Acceptable denomination. Possibility of appreciation. 60. Whether the possibility of appreciation is not purely a speculative quality may be open i The Elements of an Ideal Investment, Chapter III of The Principles of Bond Investment. to discussion, but otherwise the list is probably unquestionable and comprehensive. We may say then that if a bond house can obtain for its clients an issue with (1) principal reasonably secure, (2) interest payments regular and certain, (3) a fair return in income, (4) a fairly responsive market, (5) hypothe- cary value at the banks?an issue, (6) that is free from direct tax, and (7) requires merely semi-annual coupon clipping, and (8) matures after a satisfactory lapse of time, and (9) comes in convenient units of denomination (small for the frugal poor, and large for the rich, so as not to crowd the strong box), and (10) has as good a chance of appreciating as of depreciating when its qualities become more generally recognized?well, a bond house cannot furnish such an issu...