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The Brussels Post, 1912-1-25, Page 6MATING SAFE INVESTMENTS FUBLIC urueetee REQUIRE LARGE ALLOWANCE FOR DEPRECIATION. Otherwise, Danger of Serious Finanolal Trouble—The Capitalized Value - of the Franchise Must be Borne In Mind— What t0 Look for in Balance Sheet— Operating Expenses Should Include 130' proolatlon—Not Greater Than 60 Per Cent. Of Cross Earnings. The artiolee contributed by "Inventor' aro for the sole purpose of guiding prom 908110e investors. and, if peesdble of sat. Ing them from losing moires threaeb viewing It In "wildmat" enterprises. The impartial and reliable character of thi fuformatian may be relied upon. Tin writer of there articles and the publisher of this paper have no interests to serve In eoneotlen with this matter other than those of the reader. (By "Investor.") As a rule, the real estate of a public service corporation is a small part of its assets. The ';plant" is the important feature :and in this the bondholder is chiefly intoreetod, as being the principal security for his capital. "Plant" Were to power, plant, rolling -stook, track and general property, exclusive of real es- tate, which was referred to last week. The average investor buying old issues of well established companies has to take the figures of the company's balance sheet for the value of the assets. Where a new issue is being made, however, a bond house usually has an examination made by an independent engineer. The "replacement value" of the plant alone is considered. By "replacement values" is .meant the cost for whittle the plant in its present state of efficiency may be reconstructed. If this cost le in excess of the amount of bonds outstanding, the security is a very exasilent one. In Canada, as a rule, the bond issue of a public service corporation represents but a small proportion of the value of the company's real estate and plant. In the States. however, the case is reversed. and ae a value on the capitalized value of the company's franchise depends part of the security of the bonds. The value of a franchise depends part- ly and primarily on the political condi- tions referred to last week. After this the next question is whether the fran- chise is perpetual, or, as In the ease of the Toronto Street Railway, for a defi- nite time; whether it is partial or ex- clusive, and on what terms it terminates. The Toronto Street Railway franchise terminates in 1981. but, unless the city decides to expropriate at that time the franchise automatically renews itself un- til such time as the city does expropri- ate. It is exclusive only respecting the portion of the city which wan incorpor- ated within the boundaries of Toronto in 1891, when the franchise was granted, but any car lines built by the city can. not compete in a manner worth coned. ering as affecting the value of the Street Railway Company. So that while as respecting the present boundaries of the city the franchise is only partial it is in effect exclusive. And thio case often occurs where the original franohiee is partial; the company oocupies all im. portant available streets and there is no room for competition. The next step ie the examination of the company's earnings for a series of years. The futility of examining tho figures for one year has been shown in speaking of industrial bonds. If groes earnings are increasing and net earnings are about 40 per cent to 45 per cent. of gross, this part of the examination need only be concluded by a gianoo at operating ex. Penns. A very substantial amount must be put by for renewals and mainten- ance, or the strongest company will 110011. or or later find itself in trouble. As one O1J[D SCE1EAII FOR HOURSIIITH ECLB1d Baby Dreadful Sufferer. Could Not Keep Him from Scratching. Every 'Joint Affected. Used Cuticura Soap and Ointment and He Is Well, "Unclosed find my son's photo and I feel, by writing these few lines to you I am onlyi doing my duty, as my eon was a dreadful sufferer from eczema. Ati the age of two weeks he began to get covered with: rod spots on his legs and' groin, which mother thought woe red gum O1 thrush; but day by day 1t grew worse until every' joint and crevice were, affected and baby started screaming for hours daY and night, such a thing 1e„w as sleep wtar out of the! uastlon. I took lues to two of 8ydney'a lea ng dodoes; one sold lel was one of thew rot as he bad seen the so other 1111 not thing it so animal one ordered. ointment for rubbing tn, the other a dusting;• powder. I fettowed their prescriptions tort over tour montho and 81111 baby kept getting worse. I could trot keep h1rit from soratching, so great was his agony, When he was Ave months old I tried tho; Cuticura Remedies and 8 am very thankful to nay my baby is to -day free from ell his suffer-; frig. Hie groing'tvere blending whin I started and other parts affected were the lower pull eif his body,under the knees, arms, in arab joints, eyebows pod neck' but alter twice using Cuticutil Ointment f bean to see al dlfferenee 0110 by the time I had used one; tin, along with the bathing with Cuticura) Soap, baby was nearly cured; 9 still kept on' using the Cntlour0 Soap and Ointment, and, Tao „ thank goodness, no is iguita well and,!, 210.11 Alt ou0 by krueleewreturn of the trouhle.' ) ``8i rad) Mrs, G, Marten 2 Kni ht 81,; TuYskdnevllto..8ydnoy, 74 8.1nt Mnt •M1, 1711. Cuticura 8087 and Ointment aru. acid throughout the wand, but a liberal sempla of Midi, with a 92epage b6611 an the caro and reatment at the akin and hair o61Il. le sent ee 00t orat t ion to Potter trust & oboe. bond man says, "Dotorloratioa of plant and equipment, which 5008 on constant- ly, eau only be offset in two ways:— Ono le out of earnings.. and the other out of the security holders—that 113, by deoreasee in the market value of the se. parities. The first takes prosperity or courage; the emend leads to bank. ruptoy." It to a difficult matter to men• sure depreciation accurately, but a sato rule is to write off 10 per cent, of gross earnings oaoh month for depreciation. In this way the-oharge 10 proportionate to traffic, whioh provides automatio adjust, moot. 11 -YEAR-OLD ROBBER. Paris Police Arrest Small Boy For Thirty -Third Robbery. A boy of 11 has just been arrest- ed in Paris for hise thirty-third robbery with violence. Louis Leb- run, with a friend of his named Edouard Lamarche, who is nine years old, but has not been in prison yet, robbed the till of a shop in the Rue de Belleville of $6,80, and shot the shop owner through the neck with a revolver. The younger boy escaped, but the elder was caught, and the police are wondering what to do with him. for he has proved himself as difficult to hold behind bars and bolts as Jack Sheppard himself. He has been caught red-handed 33 times, including this last time. but always manages to get out of the hands of the authorities. SO11IE CAN But Student Rnd to Quit. Some people are apparently im- mune to tea and coffee poisoning— if you are not, Nature will tell you so in the ailments she sends as warnings. And when you get a warning, heed it or you get hurt, sure. A young college student writes from New York' "I had been told frequently that coffee was injurious to me," (tea is just as, bad) "and if I had not been told, the almost constant headaches with which I began to euffer .after using it for several years, the state of lethargic men- tality which gradually came upon me to hinder me in my studies, the general lassitude and indisposition to any sort of effort which pos- sessed me, ought to have been suf- ficient warning. Bet I disregarded them till my physician told me a few months ago that I must give up coffee or quit college. I could hesitate no longer, and at once abandoned coffee. "On the advice of a friend I be- gan to drink Postum, and rejoice to tell you that with the drug in coffee" (the same drug—caffeine— is found in tea) "removed and the healthful properties of Postum in its place I was soon relieved of all my ailments. The headaches and nervousness disappeared entirely, strength came back to me, and my complex- ion which had been very, very bad, cleared up beautifully. Better than all, my mental facul- ties were toned up, and became more vigorous than ever, and I now feel that no course of study would be too difficult for me." Name given by Canadian Postum Co.. Windsor, Ont. "There's a reason." and it is ex- nlained in the little book, "The Road to Wellville," in pkgs. Ever rend the above Tetter? A 'few ono aonenrs teem time to time. They are genuine, true and f..gfl of human Interest. WORLD'S DEADLIEST POISON. Being Used Against British Troops By Abor Trivesmen. The fact that the Abor tribes- men, against whom the Government of India have sent a punitive ex- peu.oion 'to punish them for the recent massacre of Mr. Noel Wil- liamson, are chiefly armed with bows and arrows,°e has led people to imagine that the natives will in- flict but little damage on our sol- diers. As a matter of fact; however, the arrows used by the Abele aro often more dreaded than bullets, for they are usually dipped in apoison whioh is probably the most deadly in the world. This poison is known as curare, and is so virulent that savages haves been known to. smear it on their nails and to kill an enemy merely by scratching him. "Three years ago a young doctor was convicted at Vienna for supply- ing curare to a married woman. who touched a little raw place on her husband's body with it and he died," say's the Field, "In offect he had been struck by a poisoned arrow." Curare is an artificitl compound. the 'secret of which is most jealous- ly guarded by the priests and madi- oin•e-men of savage tribes, and travellers ,have told fascinating tales of how old women of the tribes , assist the priests to make the stuff. and regard it as an honor to test its i strength upon themselves. Anothertest is to bore holes in trees and inject a quantity of cur- are, If the leaves have not fallen off before morning, more deadly in- gredients are added. Curiously enough, the do mestio fowl and the Argos pheasant are the only creatures said to be he- memo olutnbue eve., Breton, Lill: B,Ac memo from the effects of dais deadly poison. 0 co Keep "Dick" At His Be $e He'll give you his sweetest 'song only when he's in the pink el condition. Put him there, and keep him there, by feeding him on Broch's Bird Seed Holt enjoy It more, thrivebetter on 'Week finer and eine more sweetly. The 0pd Is a scientific mixture—a perfectly balanced food for song- birds Inthis climate --and the coke of Brock's Bird Treat In every package is a splendid bird tonic. Lei "Dick" try this Bird Tonle at our expense. Mail usthe coupon beloy,, filled. In, sod tie w111 send you, elisalutely free, two full -slat cakes of Brock's Bird Treat. 46 NIC•HOLSON & BROCK 9-11 Francis Street, Toronto. For flee coupon please send me, free of charge or obligation on my part two full-size cakes of Brock's Bird Treat, and oblige. Nous._.......... ADDaaea 0 0 REALLY HUMAN. Vacation is a good time, not mere- ly for the minister to pursue avo- cations, but for ether folk to dis- cover how human ho is. We re- cently heard of a small boy who came home from a Sunday school picnic and reported to his mother what he had found out abo)lt the pastor. "0, mamma," said the youngster, "he can run and nol- ler and climb a tree and eat." But a practical joke isn't if you are the victim. WOODEN SHOES IN ENGLAND. Evidence That They are Better Than Poor Loather. An effort to substitute waterproof and praotically indestructible wood- en shoos, the sort worn by peasants in Holland, France and other Con- tinental oountrlcs, for the cheap leather shoes worn by the school children of very poor parents was made in England some time ago. but was not a success. It has been revised this winter and evidence is accumulating that hi parts of the country there is an increasing use of the cumbersome footgear. The argument in favor of the clogs is that loather shoes are' beyond the means of the average English workingman of .family, while clogs' are cheap and never wear out, gen- erally speaking, Many school chil- dren of the poorer classes wear mere apologies for shoes, soleless affairs; .with holes that let in water and lay the foundation for pneu- monia and other diseases. Several years ago when Sir John Kirk, director of the Ragged School Union and Shaftesbury Society. joined Lady St. Helier in an appeal for funds to supply poorchildren in the London schools with foot wear on the part payment system the suggestion was made teat clogs bo supplied these children as more durable and serviceable than leath- er shoes. According to Percy Gray of Orlehar, Bude, North Cornwall, who wrote to Sir John Kirk on the subject, he was met with the objection that eockney- dem would not wear wooden clogs. That objeotion seemed to have been well taken, for the effort to have poor school ch'ldren in Lon- don adopt the wooden substitutes for leather shoes did not get very far. The renewed effort is find- ing encouragement in testimony of persons who have made the clog experiment with some degree of success. /MAA,E,3N � )GG, L6�r LOOK (..�appF`ORl� _p Till IG. B LLT% YACKAGi E CAREFUL TO' SEE THAT LABEL ON PACK *CC IS = LU E. NO OTHER COLOR EVER LIMON ROYAL YEAST ,REMEMBER THE COLOR CLUE E.W.GILLETT CO. LTD. TORONTO- ONT. �-1 Richard B. Martin of Tewkes- oh' and this year I gave away nine bury is one of those who have rea- son to be pleased with charitable work of this charaotor. "Last winter," he says, "I gave a few pairs of wooden clogs to some children who have to come a good three miles to school through a wet and dirty lane. The clogs 'caught more pairs and my wife over fifty pairs to one village school. They seem to keep the children's feet warmer than old and well worn leather shoes. Thad the clogs from Warrington and they ease 2s. ed. lOd„ a pair ; men's size 3s. 6d. THE BEST SECURITY FOR YOUR MONEY IS NDS q There are, broadly speaking, two classes of investments : speculative invest- ments, which may or may notpay interest and may appreciate or depreciate in value. q And there are Bonds—Bonds are mortgages split up into denominations of $loo or upwards. We continually have Bonds, the security of which is beyond question, which pay as high as 6 per cent. interest. They are the standard form of investment. They are purchased by Banks, Insurance Companies and chart- ered institutions, because the Government recognizes that they offer the maximum of safety with a profitable raft of interest. Send us your name and address and we will send you literature from time to time giving particulars of new and old issues. ROYAL SECURITIES CORPORATION um BANK OF MONTREAL BUILDING • . • YONGE AND QUEEN STREETS TORONTO R. M. WHITE MONTREAL-OUEOEC-HALIFAX-OTTAWA Manager LONDON (ENG.) zsamsEssemirmwitimavagvazccop fi.!5'a7-rx1t'SY(AIDIL;`10.11111,ICa.ni,+: n?""-,b`ck4n'..i' .'rr "SAISbOoh,t04t X00,, 15l�0 F And OFFERED BY LL By (Members Itiontreal Stock Exchange) issued simultaneously in London, Eng., $1,008,000 First ortgage Twenty -Year Sinking Fund 6% Cod Bonds of the E1Vt F t Incorporated under the Companies' Act of Dominion of Canada) In DENOMINATIONS $100, t$'i5OO, $1,000. AT 96 AND INTEREST (with 25% Bonus of Common Stock), of which $400,000 have already been taken firm, and withdrawn 'from sale. CAPITALIZATION. Authorized Issued. G% First Mortgage Bonds .. .. .... .. ........ .... ........ .... .. .. .. ..$2,500,000 $1,500,000 Coltltnon Stock .. .. ...... .... .. .... 2,500,000 1,700,000 ALLOTMENT. Subscriptions will be 10% of the par value on application 31% of the par value on allotment HON. WILLIAM C. EDWARDS Ottawa, President of W. O, Ildwards & Co.. Limited, Director of Canadian Bank of Commerce. ALEX. MacLAURIN, Montreal, Vice -President, President Campbell Mao. Laurin Lumber Company, President British Columbia Timbers, Limited. C. JACKSON BOOTH, Ottawa, of J. R. Booth, Lumber Morohant, Director British Canadian Lumber Corporation, Limited. W. MOLSON MACPHERSON, Quebec, President Molson's Bank, Director Grand Trunk Pacific Railway. HON. P. C. CAMERON, Winnipeg, Lieutenant -Governor of the Province .o8 Manitoba; Director Northern Crown Bank, President Rat Portage Lum- ber Co., Limited. Bach subscriber, upon payment of final instalment, to receive 15 -per cont. of par value of Bonds subscribed by him in fully paid up common 'shares. The Bonds will be to Bearer, and are a first and fixed charge against the Company's Licenses and other assets, including its unealled capital, The $600,000 of the bonds over and above the million now being offered were applied in part payment of the properties, and by agreement, are withheld from 'sale for a period of two years. Tho provisions of the Trust Deed stipulate that a sinking fund for the retirement of the Bonds be created by the payment on July let of each year beginning in 1918, of $1 for every 1,000 ft. (Board Measure) of lumber cut and add; also that $2 per 1,000 ft. (Board Measure) of lumber cut and sold must bo paid in before any dividend on the common stook may bo declared; also TRUSTEES FOR THE BONDHOLDERS, Solicitors In Canada—Messrs. Brown, Montgomery & McMichael, Montreal. payable as follows :- 25% of the par value on the 10 th da y of February, 1912 30% of the par value on the 10 th day of lllaroh, 1912 H. M. PRICE, Quebec, of H. M. Price 3t Co., Lumber Merchant, Director of Lako Superior Corporation, Limited. WILLIAM WAINWRIGHT, Montreal, Senior Viee•President Grand Trunk Pacific Railway, Director British Columbia Timbers, Limited. W. H. McWILLIAMS, Winnipeg, vice-Prosidont Monarch Lumber Go., Limited. C. W. FARRELL, Montreal, of G. W. Farrell & Co„ Director, Ritz-Carlton Hotel Co., Montreal, Director Atlantic Fruit and Steamship Co., New York. J. M. MACKIE, Montreal, Director Hillorest Collieries, Limited, that the laid dividend may not exceed 6 per cent. so long as any of the bonds are outstanding, The Bonds mature on the 1st day of August, 1911, but aro redeemable at 166. per Cent. by the action of the Sinking Fund, either by purchase on the open market or by drawings as provided by the Trust Deed, after lot 'day of February, 1916. The prinoipal and interest -coupons attaohod to these bonds will be pay- able at the Royal Trust Co„ Montreal. Tntorim certificates will be issued by G. W. F.'& Co., countersigned by the Royal Trust Co., which will bo exchanged for definite Bonds and stook when issued. The failure to pay any instalment when duo will render all previous pay ento liable to forfeiture, THE ROYAL TRUST COMPANY, MONTREAL, Bankers In Canada—Bank of Montreal. Montreal. The following extracts from a letter to Messrs. G. W. Farrell & Co. from the Ron. William C. Edwards, President of the Company, give further information regarding this issue:— "The properties of the tipper Fraser River (British Columbia) Lure" bar Company, Limited. are Iodated on the banks of the Upper Praiser River, and streams tributary thereto, in the Province of British dolum- bta, and comprise a total area of about 281 square miles, or 179.040 norm, of timber lands of first rate quality." "Bach Timber Limit, approximately one equare mile in extent, was separately selected by experienced timber cruisers, including the well- known timber export, John Thomson, of Portage du Fort, Quebec (favor. ably known to Messrs. W. 0. Edwards and Company, Limited, for many yearn as an experienced and reliable bush -ranger) with epeoial reference to the quality of timber, the conformation of the land, and accessibility of rivers, and the new route of the Grand Trunk Pacific Railway." "Mr. Charles M. Hays,, President of the Grand Trunk Pacific Rail. way Company, has written that his company is prepared to enter into a contract for the purchase of ties and bridge materials es soon as the railroad reaches the limits owned by this Company, which, wo are air mired, will be in the summer of nineteen twelve, and this company pro. poses to use some of the working capital provided by the sale of the Bonds to at onto equip for the delivery of this material to the Grand Trunk Pacific Rahway. Tho favorable position of the limits as regards their proximity to the great and growing marltet of the. North Wost .Provinces assures a satisfactory future 'demand for the output of the Company." .. FMIONIISCROgir "The Directors desire to emphasize the foot that Timber lands of the nature of the Company's proportieo have a constantly increasing value, and even if no operating at all were done the Company's properties are a sound investment from a holding point of view.' "The Timber on the Company's lands 1e made up larogly of Red Cedar, whioh is a vary valuable feature, and the remainder Is Spruce. Hemlock, Douglas Fir, and White Pine. The -timber is of exceptionally good quality, being thrifty and uniform In size, and Is expected to average 30 inches on the butt, •and to out from five to eight logs to the tree. Tho amount of merchantable saw, lumber contained on. the Com. pany's property hes been carefully and conservatively estimated at a total of 3,449,694,200 feet. No timber under 14 Inches in diameter, on the stump, is included in this estimate," "Tho Board of Directors is composed of praotiool and experienced men, who thoroughly understand the lumber business and the require• menta of the various lumber markets of the world, and have the hent facilities for obtaining profitable sales far the Company's ;timber." On the 'basis of the Bond issue of $1,500,000, and the quantity of timber hereinbefore stated of 3,449,694,200 feet (Board Measure) thorn is represented the low mortgage valuation- of approximately 43 • cents -per. 1,000 feet (Board Measure), The majority of companion Who have recently. offered their •B,ands in. this canary- have taken as their mortgage' vale-. titian from $1 20 $3 poo 1,005 feet of standing timber, It will, therefore, be .appreciated that the, Sonde aro exceutibnally well scoured.' COMPLETE PROSPECTUS AND FURTHER, INFORMATION MAY BE IIAD BY APPLYING TO r: ;�f �';,�, °�°° .ill: f {'EMS G. W. FARRELL o a I ® (Mernbero Montreal Stock Exchange.) 45 St, Francois Xavier Street, i'Viontreal, MAIL THIS BLANK TO C. W. FARRELL & CO., 45 St. Francois Xavier Street, Montreal. I hereby subscribe. for $.. ..'.. , .. , ,of the FIRST MORTGAGE TWENTY YEAR SINKING FUND 6% GOLD BONDS of the UPPER FRASER MEP, (BRITISH COLUMBIA LUMBER COMPAIN LIMITED, (carrying a bona's of 25% of ,the, Common Stock of the Company) payable es stated in the advertisement and I agree tosign regular ,subscription form, I therewith en- close cheek for >....,....., being first instalment of ten per cent. ITALIAN SOLDIER AT DOME DESCRIPTION BY ONE Wil0 lINOWS iusi WELL. Brave While Things Are Going Well, But Cannot Stand Reverses. Taking him all round, the Italian soldier is a cheery HUM chap, pa;s- aionately devoted to his Country and willing to put up with hard- ships provided the sun shines brightly. Cold and rain ho do - tests. Under their influence he is as miserable as a oat under similar circumstances, says London Ans- were. Full of dash while things are go- ing well, he, like ell descendants of tho Latin races, cannot stand up against reverses. In this re- spect he lacks ono groat element in the making of a good soldier, and is at a distinct disadvantage with his present opponent, the Turk, who will fight to the end and die in he Last ditch. PICTURESQUE LITTLE MEN. The darlings of the Italian peo- ple are the Bersaglieri, correspond- ing to British rifle regiments. They are Short, brood -shouldered, pic- turesque little fellows, with. wide - brimmed hats worn rakishly on one , side, and with a great bunch of !'green cock's feathers drooping over their shoulder. The finest troops in the Army aro the "Alpini," the inen who guard the "ceases of the Alps from Savoy to the Austrian frontier. They are all mountaineer; and remarkable for their physique and power of lendurance. Pregnantly they carry out manoeuvres when the snow is waist -high - Those who have seen Italian of - floor's jumping at a horse show might arrive at the conclusion that the Italian cavalry must be very fine horsemen. So far as many of the oiffeers aro concerned. this is the case, but the ordinary soldier is pretty poor cavalier. His stumpy figuro and short legs are all against him. Ho rides in a saddle it is difficult to fall out of ; but the writer, after a charge in lino, has seen the plain sprinkled with dismounted horsemen. With his swaggering gait amd long spurs. he is a very horsy man on foot. but is a distinctly fooby man on horseback. TRE GOOD-NATURED GRIN. In spite of that, however, he is a good little chap, and bears his bruises and the objurgations of his officers with the tanto good-natured grin. The cavalry is divided into �1 "Dragon," or dragoons, the front 1!.a rank of which carry lances, and "Cavallegiere," or light cavalry. The uniform is a dark -blue tunic with light -blue trousers. The swagger corps is the "Guar- dia del Re," or King's Guard— magnifioenib fellows, clad in light blue and silver. The Italian system is that of universal service. It is amusing, and sometimes a little saddening. when the annual batch of conscripts join. As two or three hundred march from ,the railway -station. headed by the regimental band, many of them are choking back cobs as they shout "Viva Italia!" and wave their hats in the air, A few clays, however, finds the soldier reeonoiled to his sur'round- in'gs, Where many of them had never previously eaten any food except "Polenta," or maize for- ridge, the daily ration of meat. breed, cheese, wine, and algae's comes as a revelation. HAPPY AS SCHOOLBOYS. True, the wine 1t or the roughest. the cheese by 010 means Gruyere or Gorgonzola, and the cigars such as one can buy for a penny a dozen; but to him everything is ex- quisite, Then he finds placesof amueemon.t thrown open to him at a ridiculously tested charge, and on some days even for nothing. He travels by railway at about a farth- ing a mile, and he can listen to as much good music as he wishes. The great majority of the con- scripts when they join can neither read or write. These accomplish - moats arc taught them by tho of- ficers, who by on means like the job, On the walls of the barreck- rooms are hong cards with the let- tere of the alphabet and words of one syllable, from which the line fortunate lieutenant is tsupporod tits instil into his flock the first elements of education. The principal meal of the Italian se]'dier takes place just before sun set, when the guard mounts. It -takes the form of astew, usually oomp.osed of pork and beans, and is frequently eaten outside in the barrntek square. A huge ealildrott is brought; from the kitchen, and the little men, each armed with,✓ itis moss -tin and horn spoon, form na't group round it as happy as 8011o01 - boys, kr T ONY. Little drops of porSpiLYWAratien. Little grains of grit -- The only way to show the world Tb et yen are' really "I:f,,"