SECURITIES: Trustees' List

In 1936 Trustee Herbert Hoover of Stanford University testified before a California court that some of the university's $24,000,000 in seasoned bonds and first mortgages should be invested in common stocks. Burden of his testimony was what already worried many another custodian of trust funds: devaluation of the dollar and inflation of bank credit had cut the purchasing power of income from fixed-income investments; currency inflation (if it came) might reduce the real value of such trust funds to a trifle.

Because the late great Leland Stanford had wisely willed his trustees great latitude in investment, Herbert Hoover and friends got...

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