this  class  is  able  to  put  by  is  influenced,  to  a
predominating  extent,  by  the  state  of  trade
of  the  country  ;  for  the  members  of  this  large
class  are  only  in  a  position  to  invest  part  of
their  earnings  when  the  latter  exceed  their
daily  wants.  To  the  great  majority  this  is
only  the  case  when  trade  is  good  ;  hence  they
seek  an  outlet  for  their  savings  at  a  time
when  the  public  at  large  can  afford  to  be
considerable  spenders.
Nowadays  the  greater  part  of  every  nation’s
savings  is  invested  in  stocks.  It  therefore
follows  that  towards  the  close  of  a  trade
boom  there  arises  a  constant  and  increasing
demand  for  stocks  to  serve  as  receptacles  for
the  nation’s  savings,  whilst  when  trade  is
depressed  for  any  length  of  time  this  demand
for  investments  first  slackens,  then  entirely
ceases,  and  is  finally  succeeded  by  a  small
trickle  of  realisation,  which  increases  in
volume  until  the  next  trade  boom  is  well
in  hand.
In  this  way  the  floating  supply  of  stock
promptly  satisfies  any  few  chance  buyers  who
may  be  about  in  bad  times,  and  then  the
surplus  supply  hangs  over  the  market  and
seriously  depresses  prices.  The  whole  question ­
  simply  resolves  itself  into  one  of  supply
and  demand  ;  so  that  stocks  are  steady  in