i

16

His  conclusions  have  appeared  in  the  April,
1907,  number  of  the  Financial  Review  of
Reviews  ;  they  have  since  then  been  published
in  the  Popular  Financial  Booklet  XXI.,  which
Booklet  has  been  reprinted  and  appended  to  this
book.
It  follows  that  if  an  investor  widely  distributes ­
  his  capital  over  the  earth’s  surface,  local
depression  in  one  quarter  will  be  counterbalanced ­
  by  the  local  trade  activity  in  another
quarter.  Further,  it  also  follows,  if  an
investor’s  capital  is  sufficiently  large  to  enable
him  to  purchase  investments  representative  of
every  trading  centre  in  the  world,  that  the
world’s  perpetual  trade  expansion  will  automatically ­
  tend  to  increase  the  realisable
capital  value  of  his  investments  year  by  year.
Moreover,  as  the  tendency  of  the  younger
countries  is  to  increase  their  proportion  of
the  world’s  trade,  so  their  credit  necessarily
tends  to  appreciate  also  ;  with  the  result  that
the  representative  stocks  of  those  countries
must  show  a  special  tendency  to  rise  in
value.
By  way  of  giving  an  illustration,  proving
the  practical  value  of  the  above  conclusions,
we  have  prepared  a  chart  covering  the  same
period,  and  in  construction  identical  with  the
charts  given  in  the  last  chapter,  but  depicting