There are two excellent classes of securities заклада one class based on actual value and

There are two excellent classes of securities one class based on actual value and the friend on value of acquisition of the property. When the person gives money for an apartment house, it bases the estimation of safety on (1) cost of the property, (2) its site, (3) average value of adjacent properties, and (4) general character of a site; that is value of the property - the safety basis. On the other hand, the creditor of money on railway , for example (that is, the buyer of the securities known as railway ), considers the road aggregate profit, instead of cost of construction and the road equipment as the correct basis to estimate value of safety. These two classes of securities differ on other detailed data. Value on usual real estate is a constant, and safety, so possibly, will not change the property while value railway can vary depending on success or road refusal, and safety constantly is in the market as the speculative property. The whole property of the company of the railway which consider simply as real estate and the equipment, is usually standing, but small [234] fraction
Quantity for which it is put in pawn. Creditors, as a rule, depend for safety of their money for company business.