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.