:il. 
IX y U ' 
tion in income is reparable, whilst to attempt 
to maintain the original standard of income 
with a reduced capital sum is a difficult and 
frequently a hazardous proceeding. 
In recent years it has been quite easy to 
construct a very safe investment list to yield 
4^ per cent, per annum on an average, but it has 
never been easy very greatly to increase this 
yield with due regard to capital safety. Now, 
suppose £10,000 had been invested to produce 
£450 per annum, and this income had dropped 
20 per cent, to £360, but the capital value had 
remained intact. In the following example, 
taken from actual experience, this condition of 
affairs is very nearly approximated, thus :— 
Bought in 1892. 
£2,000 Barry Railway Ordinary 
at 203. Div. 9^ per cent. 
£2,500 Queensland 4 per cent. Stock 
at 10*3 ... ... ... ... 
60 shares Union Bank of Australia 
at £57 a share. Div. £3 a share 
Price. 
£4,060 
2,595 
3,420 
Annual 
Income. 
£190 
92 
180 
£10,075 ... £462 
Value in 1897. 
£2,000 Barry Railway Ordinary 
at 291. Div. 10 per cent. 
£2,500 Queensland 4 per cent Stock. 
at 113 ... ... ... 
60 shares Union Bank of Australia 
at £29 a share. Div. £l£ per share 1,740 
Price. 
£5,820 
2,825 
Annual 
Income 
... £200 
... 92 
... 75 
£10,385 ... £367