SMALL INVESTMENTS.

Hawke's Bay Times, Volume XII, Issue 514, 3 October 1867, Page 3

SMALL INVESTMENTS.

(From the Bullionist.) In a highly luxurious society like that which will hereafter distinguish the present century, the one pressing fact which, above all others, insists upon being attended to, is the augmentation of income, the wherewithal to provide the absolutely innumerable comforts and conventional necessities which are the source of our happiness and comfort. For some years now the universal cry of the British people has been for more of the world’s riches, in order that they might keep pace with the rapidly advancing claims of social position. Happil? this craving for more luxury and indulgence has not included or led us into indolence. We have given increased attention to business that we might improve our homes, that our children may be brought up to and kept in a position such as the progressive wealth of those who started in the race with us led us to desire. Whether this laudable passion has been more than neutralised bv encouragement of a ’cuteness which was not formerly of this country, and by the elasticity of the commercial conscienc,’ which is now so notoriously common, is an open question, which we are not ambi tious enough to desire to solve at present. Among those disadvantages of our more brilliant life, social and commercial, these must bo classed ; but purity of morals is not alien to success in business, and we can, therefore, hope that, as our experience extends, we may see these two qualities more entirely knit together than they would appear to be at present. But our object is not to comment ui on this point, so much as to draw attention to the absolute necessity which every one feels to make the most of every resource at their command.

In other words, the demand for more luxuries gave an impetus to the supply thereof, which in turn caused competition, a demand for money to compete, and a higher value fer money. Thus, those who lived upon the interest of money no sooner found new wants than the value of money increased, and enabled them to supply those wants. And these movements, too, are equal. The cause is equal to the effect, the effect to the cause. These almost entirely new conditions were not simultaneously realised. On the contrary, they are eminently progressive They have been increasing in force ior many years now, and their course has not been arrested. Besides this, a very large number of persons are more or less unequal to grapple with the change which it is for them to make, and without faking which they are at an obvious and serious disadvantage. With the increased demand for money have sprung up joint-stock enterprises of all classes, besides an abundance of Colonial Government guaranteed and preference securities, yield a rate of interest about double that formerly obtained from investment. The first legal indication of this great monetary change was when trustees were permitted to invest trust money in other than the funds. These reflections lead us to think in what direction those in possession of incomes derived from investments may best seek for reasonably safe and profitable undertakings in which to place their money. At the starting it will be well to bear in mind that no wise person places all his eggs in one basket. A part can be lost or depreciated without permanent or serious deprivation, perhaps, but to lose all would be in most instances ahi-olute ruin. We are induced to pursue our reflections from the painful disinclination everywhere manifested for the ordinary and more known undertakings. ewd. beyond tbeae there is a small class of jointstock commercial companies which are for the most part of a respectable and profitable character. They are little known to the ordinary public, for the reason that they are formed in many instances for the conduct of certain businesses which bad outgrown the private resources of the original proprietors. Their capital is often too small for them to procure quotations in the Stock Exchange list ; but anyone who looks down the money articles of the daily papers must have noticed that during the last six weeks the reports of a multitude of these companies have been noticed, the names of which were quite ; strange to the popular ear. In the maiority of cases the dividends have been ■ exceedingly satisfactory, ranging from six

to ten per cent, per annum. The cause of this prosperity in a season of great distrust and inactivity is to be found in their diminutiveness, and the definite occupations which they carry on. A troubled money market affects them, bat only as it affects private bu-iness-houseg. and not as it alarms speculative undertakings who are large borrowers. Moreover' such quiet establishments as many of these small business'coinpanies are, have an advantage over private firms of equal status and means, .beyond the capital paid up they have at their bank an uncalled capita! wmea at an emergency would relieve them • rum any ordinary distress. Moreover, their creditors know this, and the verv fact is oftentimes equal to the money being at hand. But with private firms it is only repute that cau keep the creditor easy in a time of general anxiety, and repute is but a feeble support, which any malevolent person may for years, if not for ever.