ment and paid off at par. On the other hand, if
the bonds are bought at a discount, there is no
danger of loss; and a profit will be realised
should they be drawn for payment.

For instance, a £100 bond is purchased at 4
premium, costing £104. If the bond is paid off
at par, or £100, there is obviously a loss of £4;
but if the bond is purchased at 4 discount, cost-
ing £96, it is equally obvious that, if paid off at
par, there would be a gain of £4.


RAILWAYS.

Next to the British Government Funds, by far
the largest amount of money is invested in Eng-
lish railways. First in order of safety, as an
investment, is the debenture stock of a railway
company. This is the first charge on the rail-
way, and holders of the stock are paid the in-
terest thereon in priority to all other stocks. In
the event of the failure of the company they
must also be fully satisfied as to principal and
interest before any one else can receive a penny.
Any amount of stock, odd or even, may be pur-
chased through a banker or broker, and war-
rants for the interest are forwarded half-yearly
to the address of the registered holder. The
debenture stocks of good English railways com-