77 



or were likely to increase, while the securities paying fixed rates of interest or steady 

 rates of dividends have been ignored. This condition of mind caused a boom in rubber 

 securities in 1910, when over 21,000,000 of capital was raised in the London market 

 for new rubber companies, and when prices of rubber shares rose to high figures in 

 consequence of actual or anticipated dividends. It also created a great demand for 

 securities of oil, shipping and other companies' shares, where the profits have expanded 

 rapidly in consequence of the trade activity. In Table IX the prices of a number of 

 securities quoted on the London Stock Exchange at the end of 1912 are contrasted 

 with those at the end of 1908. The changes show clearly the demand for securities 

 giving relatively high rates of interest or increased rates of dividend in comparison 

 with securities where the rates of interest and dividend have been low or stationary. 

 The prices of securities at the end of September 1912 are added to show the fall in 

 stocks in the last three months of 1912 in consequence of the Balkan crisis. 



Table IX. Courses of Prices on the London Stock Exchange. 



It is noteworthy that gold-mining shares have also suffered neglect in common 

 with high-class securities in the recent good-credit period. In the nineties the demand 



for gold-mining shares arose from the recognition that the supply of gold 

 shares. " "* wa ? inadequate to the world's needs. At the present time it is generally 



admitted that the world's production of gold is sufficient, and inasmuch 

 as large incomes can be gained from the investment in securities which have benefited 

 and are benefiting from the activity of the world's trade arising in part from the great 

 production of gold, the inducement to purchase gold-mining shares has largely dis- 

 appeared. Of course, diamond, silver and other mining shares are not in the same 



