CHAPTER ILE 
THE GEOGRAPHICAL DISTRIBUTION OF 
CAPITAL. 
A study of the published official trade reports 
of all civilised nations proves that the world’s 
trade, if taken as a whole, is constantly 
expanding. Indeed, the mere fact that the 
world’s population continues to increase steadily 
renders a corresponding expansion of the 
world’s trade inevitable. Statistics also prove 
that two countries which are under different 
Governments and geographically distinct from 
each other will generally differ widely in their 
respective trade activity. Thus, locally, trade 
may suffer periodical depression, but the trade 
of the whole world is perpetually growing. 
The fact that, whilst the world’s trade is 
constantly expanding, the share of each 
separate nation in it is constantly altering is 
the fundamental principle of pur geographical 
method of equalising investment risks. As the 
proof of this fact is of necessity the work of a 
statistician, Mr. Holt Schooling has been asked 
to independently investigate this subject.