APPENDIX. 
POPULAR FINANCIAL BOOKLET XXI. 
(The subjoined Article was written for the issue of the 
Financial Review of Reviews of April, 1907). 
WORLD'TRADE AND THE GEOGRAPHICAL 
DISTRIBUTION OF CAPITAL. 
Geographical Distribution of Capital has been put forward by the 
author of “Investment, an Exact Science,” as the only known means for 
ensuring capital safety and stability. The principle of Geographical 
Distribution of Capital is based upon the fact that whilst the trade of 
any one country is subject to trade cycles, the trade of the world is 
immune from such trade cycles : and that, therefore, whilst the invest 
ments of any one particular country suffer from bad trade in that 
country, the investment trade over the surface of the world cannot on 
average so suffer. In this article Mr. John Holt Schooling, F.S.S., 
author of the “British Trade Year Book,” etc., makes an independent 
investigation of this subject. His analysis is, of course, authoritative, 
and his results confirm the accuracy of the argument put forth in 
“Investment, an Exact Science.” The subject of capital safety and 
stability is one of such vast importance that Mr. Schooling’s article 
should be read by all investors who have not yet adopted the system of 
Geographical Distribution of Capital, and have therefore, so far, failed 
to achieve capital safety and stability. 
The idea of the Geographical Distribution of 
Capital is based upon the main principle that 
safe and profitable investment of capital, as 
distinct from speculative finance, depends upon 
the sagacious distribution of the investment of 
capital in different parts of the world. It has 
already been ably shown that the investment of 
capital in various securities of one country 
exposes the capital invested to considerable and 
unsuspected speculative risk. That speculative 
risk arises because the state of trade in this or 
in that country is the predominant factor that