"by the borrower ; but, in the case of stocks and 
shares of other types, revenue consists of the 
nett income earned during a given period. 
The safety of revenue derived from rates 
and taxes is estimated from officially published 
statistics which are accessible to all. The 
earnings of companies are published in their 
annual balance-sheets, copies of which are also 
obtainable in most cases. In How to Manage 
Capital we explain how investors, by means 
of the statistical information, can appraise the 
income safety of every investment almost at a 
glance, and we will, for this reason, here simply 
state the main rules for estimating income 
probabilities :— 
1.—Income is safe from Railway and 
Industrial Debentures and Preferences when 
the Company has a large surplus income 
remaining after satisfying these obligations. 
The safety of income derived from Govern 
ment and Corporation Loans mainly 
depends on the political and financial 
honesty of the individual Government or 
Corporation, and must, therefore, be gauged 
by past records, taken in conjunction with 
the budget and revenue returns. If a 
Government or a Corporation has met all 
its obligations without failure or delay for 
a period of ten years immediately preceding