4 
enlarge on it further, but we will confine 
ourselves to the question of the two classes 
of In,vestment Risk which may be defined 
as follows :— 
1. —Diminished Capital.—This disaster 
cannot be repaired out of income except 
with great difficulty, and in any event such 
a calamity must result in impaired capital 
safety, if the original rate of income is to 
be maintained. 
2. —Diminished Income.—This minor 
investment inconvenience can always be 
rapidly remedied if capital still retains, or 
has improved upon, its original value. 
In other words, Capital is the tree, 
Income is the fruit. The welfare of the tree 
must always be the first consideration. In 
vestors will do well to permanently fix the 
above axioms in their minds, and to be guided 
by them in all investment questions. 
Having fully grasped the all-pervading 
importance of capital, our readers might now 
jump to the hasty conclusion that successful 
investment simply resolves itself into being 
contented with a very moderate income and 
investing in nothing but the finest securities. 
Unfortunately, however, the quality of the 
investments held is not sufficient in itself to 
ensure capital safety.