80

It  will  also  be  noticed  that  the  increase  in
value  does  not  correspond  with  the  increase
in  income.  At  the  commencement  of  the  chart
in  1893  the  average  yield  was  about  4  per  cent,
per  annum.  Between  1893  and  1897  there  was
an  increase  in  value  of  £2,902,  but  the
dividends  had  only  increased  by  £54,  which
was  at  the  rate  of  under  2  per  cent,  per
annum  on  the  increased  value.  In  1895  and
1906  the  income  was  exactly  the  same,
viz.,  £453,  yet  the  capital  value  in  the  latter
year  was  reduced  by  £1,204,  or  over
10  per  cent.  Again,  in  spite  of  an  increase
in  dividend  of  £10  in  1906  as  compared  with
1905,  yet  the  capital  actually  decreased  in
value.
Indeed,  the  more  closely  this  chart  is
studied  the  more  apparent  becomes  the  overwhelming ­
  influence  of  British  trade  and  flnance
on  Home  securities.
The  great  lesson  to  be  learnt  from  the
chart  is  the  hopelessly  mistaken  belief  of  a
great  many  investors  who  hold  a  mixed  assortment ­
  of  British  stocks  that  the  increased
prosperity  of  a  portion  of  their  Investment
List  may  be  relied  upon  to  counterbalance  any
dwindling  of  value  and  dividends  amongst  the
other  portion  of  their  holdings.  That  any
counterpoise  of  this  sort  is  ever  to  be  derived