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SelectedInvestmentSecuritiesWe own and offer subject to previous sale:$217,000POTTAWATTAMIE COUNTY, IOWA5% FUNDING BONDSExempt from all Federal Income TaxesMaturing January 2nd, 1924 to 1938 InclusiveFinancial StatementActual assessed valuation . $92,192,163Total bonded debt . . . 625,500Population (1915) . . . 56,896This county is one of the richest agricultural counties ofthe state of Iowa, in the heart of the Corn Belt of the MiddleWest. Land is conservatively valued at $225 to $300 per acre.Council Bluffs the County Seat has 29,292 people served byeight great trunk lines of railroads, is one of the largestagricultural implement distributing points in the Country aswell as having the largest grain storage Elevators in theMissouri Valley, and doing a large jobbing and distributingbusiness in all lines.Price to net 4.60%acceptable as security for Postal SavingsSend for circular No. B 40 and list of othersecurities.Bankers Mortgage CompanyCapital $2,000,000Des Moines, IowaCHICAGONEW YORK112 West Adams St. 512 Fifth AvenueRandolph 5700 Vanderbilt 2712Write the nearest office1/2 % SAFELY 6%5 SECUREDFARM MORTGAGESInvest in Farm Mortgages, and you willnot have to consult the financial pages ofyour newspaper every morning to determinewhat you are worth. You can alwaysinventory your farm mortgages at par;they possess greater stability than almostany other form of investment.We offer for sale the highest type of theseinvestments—first mortgages on improved,productive farms in the famous "BlackWaxy Belt" of Texas. Correspondencesolicited.For a free copy of our book " Investing",write us on your business stationery.TEXAS MORTGAGE COMPANYT. J. COLE, Presl.Paid up Capital $200,000DALLAS,TEXASContinued from page 81vestment banks collect and remit to the investorwithout charge and in addition makecertain that insurance on the improvements ismaintained. The taxes are watched and theproperty is kept in repair, thus giving a wellroundedinvestment service. Others leave allthese details to the investor or perform themonly on payment of a fee.Whether the investor places his money undermortgage direct or invests through a bankinghouse,however, either he himself or some one actingon his behalf should determine the soundnessof the mortgage by submitting it to tests whichare well recognized by experts as sound andnecessary. These tests include the following:1. Is the property well located in a city anda district where real-estate values are firm,stable, and steadily growing, and which is protectedagainst deterioration?2. Is the property earning an income sufficientto meet at least interest, taxes, and insurance,and, if possible, to reduce the principalof the indebtedness as well ?3. Is provision made for amortization or reductionof the principal, and if so, how effectiveis the provision ?4. Is there a sufficient equity or margin ofsafety protecting the loan ?5. Are the improvements new or nearly new,so that they are at the maximum of their earningpower and least subject to depreciation ?6. Is the building of modern type and goodconstruction ?7. Is it well suited to its neighborhood andto the rental demand therein?8. Is title to the property without flaw andis ample fire insurance carried?9. Have all legal details been properly lookedafter ?10. Is the borrower financially and morallyresponsible ?Mortgages which meet the above tests maybe classified as good mortgages and safe investments.Virtually all the trouble which hasever been experienced by mortgage lenders inthe past is due to the neglect of one or more ofthese requirements. The investor who observesthe above tests faithfully is not likely to lose.That mortgages as a class have beenfaithful to the trust imposed in them by hundredsof thousands and millions of investors isevident from their record. Taken as a whole,it has been a favorable one. Millions of smallmortgage deals are made each year and theproportion of them which result in losses issmall indeed—a striking commentary on thefundamental soundness of this type of securitywhen properly safeguarded.82