Individuals of a timorous disposition, if they
value their peace of mind, would do well to
avoid investing their money in bank shares.
There are banks whose position and stability
are above suspicion, and which return handsome
dividends to their shareholders; but there have
been cases of banks, enjoying unlimited confi-
dence, which have unexpectedly collapsed and
overwhelmed their shareholders in ruin. The
nervous person, therefore, who could not read of
the collapse of a bank without a fearful appre-
hension that his own would be the next to go,
had better be content with a smaller rate of in-
terest and a tranquil mind therewith. The more
sanguine investor who desires a good rate of
interest for his money, and has a contempt for
contingencies, should at least have some know-
ledge of accounts, and be able to form some
estimate of the position of a bank from the
annual balance-sheet, and should carefully
ascertain what immediate contingent _liability
he would be_ subject to in the event of collapse.
COLONIAL AND FOREIGN CORPORATION STOCKS.
These represent money borrowed by munici-
palities and trusts in Colonial and foreign towns,
and the security offered consists of rates and
revenues from the various undertakings, such as
harbours, gas, and water-works, city improve-
ments, &c., in which the loans are invested.
The loans are mostly represented by bonds, to
which coupons are attached for interest, and are
repayable at a certain specified date. Although
they do not command the high credit of British
Corporation loans, yet some of the Colonial
towns are in fair repute as an investment, and
the rate of interest is high enough to tempt a
large amount of money from this country.
Towns of some size in our Colonies, and
thoroughly settled, may be relied upon to carry
out their obligations, but mushroom cities and
foreign places liable to political fluctuations
should be looked upon with suspicion.

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