G  2

81

and,  in  the  second  place,  of  explaining  how
various  types  of  securities  should  be  employed
in  order  to  obtain  certain  desired  results.
Stocks  should  be  used  by  investors  in  the
same  way  as  an  architect  uses  building
material.  Just  as  there  are  various  kinds  of
timber,  every  one  of  which  possesses  different
qualities,  so  there  are  different  classes  of
stocks  with  varying  advantages  or  drawbacks.
The  lowest  class  of  timber  can  be  utilised
in  its  proper  place,  and  in  the  same  way  even
the  lowest  grade  of  stocks  can  under  certain
circumstances  be  advantageously  employed.
It  would  be  a  pity  to  employ  line  oak
beams  for  supporting  the  roof  of  an  outhouse,
and  it  is  equally  unwise  to  invest  in  a
British  Trustee  Security  when  a  fair  Ordinary
share  would  do.  In  a  virgin  Oak  forest,  far
removed  from  civilised  centres,  oak  logs  might
be  so  employed,  for  the  timber  does  not
command  a  fair  comparative  price  in  such  a
region  ;  and  similarly  a  iirst-class  6  per  cent,
yielding  Debenture  emanating  from  a  country
where  money  is  dear,  might  be  used  for
ordinary  Investment  purposes.
For,  as  with  timber,  whose  price  is
regulated  by  its  proximity  to  markets,  so
is  it  with  stocks,  whose  yields  are  regulated
by  their  geographical  position.