(Q) Will you comment on the present trends of events in
Europe that will most affect conditions in this country, and
what the effects here are likely to be during the next few
months?
(A) As we find, the events in Europe in the next few months
- or until the latter portion of the summer - are not to have
any great appreciable change in outlook from that existing in
the present. Yet it will be found by the closer observance
of activities in other lands, particularly from Canadian,
English or even Italian associations, more and more
investments will be made in American production or American
activities.
Hence these will be in specific lines and those that affect
rather the nation, or the activities of the nation as a
whole.
As to those conditions of specific nature that will affect
the relationships with France, with Germany, we find that
these become more and more with a tendency towards an anxiety
on the part of any great amount of exchange or great amount
of activity in relationships with investments in either of
those groups of individual activity. For while in each of
these particular spheres there are some minor specific
conditions that have grown or do find their greater activity
in France and Germany, there will be more and more sought an
outlet. And the tendencies upon the part of the British, the
British associations even from Austria, South Africa, Canada
and Britain itself, will be more and more for the greater
influences in capital to seek American investments, rather
than the activities of America seeking investments in THOSE
lands - for the general turns or for expansions. Hence the
whole of Europe may be said to be looking rather to America
for a security in the monetary activities of new associations
in world influence in this direction.
The activities from Russia or the Asiatic relationships
present rather a different condition, yet the very fact that
there will be more and more the attempts through the Italian,
the Spanish, the English for their investments, is the
greater reason why America must remain - as it were - the
balance of power in not only the money forces of the world
but those influences that will later be for the manning of
those powers where greater destructive forces will arise in
those portions of the world.
Individuals, then, that seek for the understanding of these
will find that through this, that and other channels there
are being sought, and there will come, more and more in the
next few months, capital to America for investments.
In what are these, then (the natural question), being sought
for?
Not in the bonds, stocks, but rather are these channels
seeking for connections with utilities that are in the nature
of supplying to the public more and more of not only
necessities but of all natures in these directions.
Hence these may be a channel through which associations for
this body may be made helpful.
(Q) Is the transfer of funds in large amounts from this
country to Europe likely in the near future?
(A) Rather as indicated. While there are in a few instances
transfers, there are the real investments coming to this
country rather than going away in the next few months.
While for stability for other reasons (that is, the
evaluation of the monetary forces) there is the necessity, as
it were, of volumes being moved; yet the real investments are
beginning in these directions.
(Q) How soon will the failure to balance the budget in this
country begin to affect the credit of the Government and the
prices of its bonds?
(A) By '37 and 8.
(Q) Is it probable that business activity will continue
upward, and if so what industries should show the greatest
improvement?
(A) These, as we find, will continue to show an improvement;
and those that are in the industrials that show for the
necessities of the people as a whole, in THESE will there be
the greater advancement and the greater show of strength in
same.
(These as illustrations:)
While there is being a great hullabaloo, as it might be
termed, raised as to power plants, industrial activities in
these directions, there will be more and more moneys, more
and more the use of same. For there has been and is being
created by just such a hurrah the consciousness of the
ADVANTAGES to those who have the use of same; it is being
made in the minds. And it becomes rather a psychological
time when even with lower rates, more moneys will be the
incomes.
Too, of course, the industrials that are in the positions for
MANNING or powering other nations with implements of
destruction of every nature, these will show for a greater
and greater volume being carried on in the United States.
(Q) Will the political campaign be an important factor on
business activity and investment psychology during the
balance of the year?
(A) This may be worthy of note, that while in the history of
the nation as a nation each period when there have been the
indications for activities in these directions, these have
affected not only the bonds but great industrial units, great
industrial activities, in this particular period it will be
seen that there will be a time when in those specific lines
indicated these will go forward even BEYOND that of ordinary
periods.
As we find, if there will be a concensus of opinion in the
land in the present, there will be a change for the better.
If these conditions are carried to those periods when there
have been the activities in a great campaigning activity,
these - of course - may change from day to day.
TODAY - it would be a change.
(Q) Is it probable that tax or other legislation to be acted
upon by this session of congress will seriously affect
business?
(A) The action that will affect will not be enacted in this
period. These rather become policies in the very activities
of the constituents of the legislators in such measures that
too fearful are they of their OWN individual positions. But
these will, as we find, adjust themselves. While there is
the opportunity with the carrying on of the present
activities, the necessity for a readjustment and a
repudiation by the government of much that has been enacted
or has been the loaned power, these - as we find - will be
stayed rather than being carried to that point.
(Q) Since the last reading I have devoted an increasing
amount of time to the investment management business under
the name of Johnson and Lagerquist, Inc., located in Room
1620 at 420 Lexington Ave., N.Y. Have you any comment as to
this activity or as to its present organization and
personnel?
(A) As has already been indicated, this has been and is a
healthy, normal growth. Until there has been more of a
stabilization in national affairs, national politics locally,
let the conditions come as they will or may in the present.
Seek rather those associations of others seeking from outside
for investments in these lands.
(Q) The increase in our business has been entirely from
individuals coming to us through other clients. Should we
actively solicit the accounts of banks and other corporations
and if so by what methods?
(A) As indicated here, these had best remain rather than
making a great program in the immediate for the expansion in
these directions.
For these (the ways and manners in which it is being handled
in the present) allow for the advantage of studying the
situations and also enabling those handling same to take the
proper precautions for those that seek through these channels
for advice and counsel in these directions.
Yet with these tendencies arising from various groups in
those lands as indicated, then seek rather in THOSE for the
immediate and let the own surroundings grow as they are being
expanded in the manners as from month to month.
(Q) Should we actively solicit the accounts of banks and
other corporations and if so by what methods?
(A) Especially those that are as international, yes. As to
the local or national, rather let them seek the channel by
the manner in which these are being handled in the present.
For these will come.
(Q) In seeking, by what methods?
(A) Indicating through individuals that may meet by
solicitation or may meet by the general activities that make
for same. But knowing that there are those characters of
accounts that are through the international associations,
then make it known to those by the very activities that open
for consideration or for counsel in the local activities.
(Q) Should we take any steps through publicity to get our
name and work better known?
(A) These, as indicated, as we find, should be not too fast;
but let it be rather a healthy, normal growth.
(Q) Would it be advantageous to form an investment trust
designed particularly for individuals of moderate means, too
small to justify handling their accounts separately?
(A) This would depend upon the very acts of the present
legislative bodies in these directions. If there are to be
those taxations upon the evaluations of such an organization,
upon its funds that become remunerative, this would be rather
a disadvantage than an advantage. But if there is to be the
proper consideration of such investors, handled under such
conditions as may be set by such an organization as this,
very well. Then by the middle of June this may be determined
by those considering same.
(Q) We have made no change in the general investment policy
for clients' accounts since the last reading. Have you any
comments or suggestions at this time?
(A) None other than those that have been indicated, as to
what fields of activity will have special advantages in
investments.
(Q) The industries we believe to be in the most favorable
position for investment in their securities are listed on a
sheet of paper held in my hand. Have you any suggestions for
changes?
(A) Only as would be indicated by that already given. These
we find as preferences, but as to the rest we have no comment
in the present.
(Q) Should funds awaiting investment be invested at this
time or is it probable that a more favorable time will occur
in the near future?
(A) The present is good, as we find, for those waiting for
investment; especially in those classes indicated.
(Q) Have you any other comments as to the investment
management activities or how our service could be improved?
(A) These would rather be as the natural growth or the
advantage of the experience and the study. For all, of
course, are upon these bases:
There is in any investments to be made this basis to be
considered, that the very earning power of such an
organization, the evaluation of their stocks or their bonds,
must be ACTUALLY in keeping with that being actually
accomplished; not just hoped for, see?
Steel, of course, will also in America remain rather as the
criterion, rather as the basis from many another of the
operative forces. While motors make for great changes at
times, these are reaching now such proportions that the
rather real earning powers are not always in keeping with
just what is being accomplished in the organizations, but
they are hoping for! While those in motor POWERS, as in
electric forces, as of those natures THEIR earnings, while
are below many of those, are real values and the staying
forces of these are more in keeping with that required.
(Q) I am actively engaged in working out a plan for the
reorganization of National Bancservice Corporation. The
present alternate methods appear to be to sell the three
subsidiary companies separately to present management, or to
outside interests or to liquidate one or more of them. Have
you any comment?
(A) Liquidate two and then those of the present management
and those associated activities, as we find, would be the
better manners for the present outlook for same.
(Q) After the reorganization is completed should I
disassociate myself entirely from this activity and devote my
entire time to the investment management activity?
(A) More and more associate self with the investment
activity. Gradually, as good judgement, as the better
conditions show; disassociating in the direct or directing of
other activities.
While not well for any individual at any time to have all
activities in one direction, yet - as may be seen by the
investments activity itself - these may not be done and yet
be all directed in the one general direction.
(Q) I am trying to sell my house at ... [L.I.], N.Y., since
it is more expensive to maintain than appears justified by my
present or prospective income. Should I succeed, what other
community near N.Y. would be more satisfactory, considering
health for all members of the family, schooling for the
children, congenial associations and easy commutation?
(A) This is rather a large proposition and order in itself?
These would be hard to define in all of these directions, as
we find, without making for considerations in many, many
different ways.
These had best be developed, as we find, as conditions and
circumstance warrant such changes.
This may be given further counsel as conditions develop.
(Q) In Life Readings [
566-1 and
628-1] of each of my two
children it gives the previous appearances before this as
having been in Vinland, in Providence or old Providence Town.
Will you give the present name and location of this town?
(A) That which has been now incorporated into Salem and
those surrounding territories is that of OLD Providence Town,
while Providence and Provincetown are two separate or two
others - yet all of this was once known as Vinland. For all
those portions of the Cape Cod area, called now Providence
and Newport and the Rhode Island area, area covered with
vines - in Eric's time. While those activities as indicated
are in the records there, in a portion of now Salem, Mass.
(Q) It mentioned a church - Ann Church, is this still
standing and still the same name?
(A) The church is still there! I see it! Still the same
name; a spire, a square, and the stone leaning.
We are through for the present.
Copy to Self
Copy to Ass'n file
BACKGROUND
8/19/35 He obtained Business Rdg.
261-16, answering
questions.
4/28/36 He was present, submitting further questions.
REPORTS
10/04/36 He obtained his next Business Rdg.
261-25.
Edgar Cayce Readings © 1971, 1993, 1994, 1995 by the Edgar Cayce Foundation