The trend is thus favorable. Conceivably a company can have so much success in selling these thrift notes or other short term obligations that it might be reluctant to stop selling at the right time. If the particular company with $1,254,000 net worth sold $10,000,000 of these notes, the net worth of the company would be less than 10% of the total obligations of the company. If losses amounted to 10% of the total portfolio of loans held by the company the entire capital of the company would be lost and the notes would be impaired. The investor should consequently from time to time get financial statements from the company to bring him up to date on exactly where the company stands. In total, there was outstanding probably between $150,000,000 and $200,-000,000 of these short term notes of finance companies in 1961.

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