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appreciates  or  depreciates  the  capital  value  of
securities  of  many  different  kinds.  In  other
words,  the  idea  of  the  Geographical  Distribution
of  Capital  is  broadly  based  upon  a  wide
application  of  the  old  adage—“  Don’t  put  all
your  eggs  into  one  basket.”  And  “basket”
here  means  “  country.”
The  enormous  loss  suffered  by  investors  in
the  capital  securities  of  the  United  Kingdom
during  recent  years,  and  the  large  depreciation
of  our  National  credit,  are  most  serious  matters.
And  the  present  subject  is  well  worthy  of
careful  examination.
I  have  been  asked  by  the  Editor  of  the
Financial  Review  of  Reviews  to  examine  the
fluctuations  of  the  trade  of  the  world,  with
special  reference  to  this  matter  of  the
Geographical  Distribution  of  Capital.  The
main  points  put  to  me  are  these  :—
Does  the  trade  of  the  world  constantly
increase,  despite  falls  or  rises  in  the  trade  of
various  parts  of  the  world  ?  And,  is  falling
trade  in  one  part  of  the  world  more  or  less
counterbalanced  by  rising  trade  in  another  part
of  the  world  ?
These  are  interesting  questions,  and  the
investigation  of  the  facts  necessary  to  reply  to
them  ought  to  bring  out  some  widely-based
results  of  much  value,  apart  from  the  results