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GENERAL PRINCIPLES OF INVESTMENT
With the immense increase in wealth in
the United States during the last decade and its more general
distribution, the problem of investment has assumed correspondingly
greater importance. As long as the average business man was an
habitual borrower of money and possest no private fortune outside of his interest in his
business, he was not greatly concerned with investment problems. The
surplus wealth of the country for a long time was in the hands of
financial institutions and a few wealthy capitalists. These men, the
officers and directors of banks,savings-banks, and insurance
companies, and the possessors of hereditary wealth, were thoroughly
equipped by training and experience for the solving of investment
problems and needed no help in the disposition of the funds under
their control. During the last ten years, however, these conditions have been greatly altered.
The number of business men to-day in possession of funds in excess of
their private wants and business requirements is far greater than it
was ten years ago, and is constantly increasing. These men are
confronted with a real investment problem.