he would, of course, make less than four per
cent. upon his investment. Such bonds are absolutely safe and always
marketable on account of our strong financial standing among the
nations of the world. Similar bonds are issued by States, cities,
towns, school districts, etc. They are not mortgages in the ordinary
sense, and their worth consists entirely in the ability of the issuer
through its taxing power to meet the obligations incurred. Municipal
bonds are issued by cities and other municipalities to raise money for
local improvements.

BONDS AND CERTIFICATES OF STOCK

A bond is evidence of debt, specifying the interest and stating when
the principal shall be paid; a certificate of stock is evidence that
the owner is a part owner in the company, not a creditor of the
company, and having no right to regain his money except by the sale of
the stock or the winding up of the company's business. Bonds issued by
stock companies and corporations are really mortgages upon their
resources. Such a bond is usually secured by a mortgage upon the
company's plant, franchises, and assets, or some part thereof.
Corporate bonds can only be issued by the consent and direction of the
shareholders of the company or corporation.

At the present time a mortgage securing the payment of corporate
bonds is usually placed in the hands of a trustee--generally
some trust company--which is supposed to act in behalf of the
bondholders as a unit and which is empowered by the language of
the bond, in the event of the failure of the corporation to
perform the obligations it assumes in said bond, to foreclose
the mortgage and divide the proceeds of sale among the
bondholders.--CARROLL.

CLASSES OF CORPORATION BONDS

Corporation bonds are of many classes, differing widely in their value
as securities. Only a few of the more important classes can be
mentioned here. FIRST MORTGAGE BONDS constitute, as the name implies,
a first lien upon the property of the company issuing them. It is
important in estimating the value of such securities to know whether
they include only the property of the corporation at the time the
bonds were issued or whether they are so worded as to include all
property owned or acquired by the corporation. Second and third
mortgage bonds are second and third liens. The interest upon second
and third mortgage bonds is paid only after the interest upon first
mortgage bonds is satisfied.

When bo