82

Thus  a  good  British  Debenture  Stock  will
command  a  price  at  which  it  will  yield  only
about  per  cent.,  whilst  an  equally  well
secured  local  African  or  Japanese  Debenture
can  be  bought  to  yield  0  per  cent.  ;  or  in  other
words  £75  invested  in  the  latter,  will  go  as  far
as  £100  invested  in  the  former.
A  builder  of  an  investment  scheme  requires
materials  (Stocks)  which  are  situated  in  different
parts  of  the  globe.  For  some  of  those  which
emanate  from  the  centre  of  civilisation,  he  will
be  forced  to  pay  high  prices  ;  these  should  be
offset  by  the  compensating  low  prices  at  which
others,  situated  in  remote  countries,  are
purchased.  The  less  civilised  a  country,  the
more  its  stocks  should  yield,  and  in  this  way  a
fair  average  return  can  be  secured  from
capital  judiciously  distributed  over  the  earth’s
surface.
If  a  Trustee  is  forced  to  invest  exclusively
in  British  Trustee  Stocks  he  will  obtain,  an
average  yield  of  under  3^  per  cent.,  whilst  a
Trustee  whose  hands  are  not  equally  tied  can
obtain  over  4  per  cent.,  and  every  security
which  he  holds  can  be  quite  as  sound  as  the
British  Trustee  Securities  are.  Private  investors
are  not  in  any  way  restricted  in  their  selection  ;
hence  they  are  wasting  their  substance  when
they  neglect  to  provide  a  sufficiently  wide  area