must  adhere  closely  to  the  three  cardinal  rules
for  obtaining  capital  safety,  as  defined  on
page  11  of  this  book.  In  return  for  this
additional  trouble  he  will  obtain  an  increased
yield  of  up  to  l£  per  cent.,  and  he  will
experience  no  difficulty  in  making  his  capital
produce  about  five  per  cent.  He  should  confine
himself  exclusively  to  sound  Debentures,  Bonds,
and  first-class  Preference  shares,  and  he  should
avoid  all  stocks  which  are  easily  swayed  by
political  and  monetary  influences,  or  financial
cliques  or  combinations,  taking  in  preference
issues  which  are  less  liable  to  these  influences.
By  these  means  his  capital  safety  will  be  quite
as  secure  as  if  he  had  invested  in  accordance
with  Example  I.
III.  Reduced  Capital  Safety  compensated  by
a  comparatively  high  yield.
An  investor  who  is  forced  by  circumstances
to  make  his  capital  return  him  a  larger  yield
than  .five  per  cent,  can  achieve  this  object  by
taking  additional  trouble  over  his  investments.
The  stocks  which  he  selects  should  in  the  main
be  of  the  same  nature  as  those  described  in
Example  II.,  yet  giving  a  higher  yield.
Ordinary  stocks  and  shares  situated  in  oldestablished
  industrial  centres  may  be  blended