9 °

ESSAYS IN PERSUASION

PART

cent rate effective in 1903), while the purchas-ing power of the annual dividends, even afterallowing for the reduced rates of interest, hadincreased 50 per cent. But Consols, too, hadadded the virtue of stability to that of improve-ment. Except in years of crisis Consols neverfell below 90 during the reign of Queen Vic-toria ; and even in ’48, when thrones werecrumbling, the mean price of the year fell but5 points. Ninety when she ascended the throne,they reached their maximum with her in theyear of Diamond Jubilee. What wonder thatour parents thought Consols a good invest-ment!

Thus there grew up during the nineteenthcentury a large, powerful, and greatly respectedclass of persons, well-to-do individually and verywealthy in the aggregate, who owned neitherbuildings, nor land, nor businesses, nor preciousmetals, but titles to an annual income in legal-tender money. In particular, that peculiarcreation and pride of the nineteenth century,the savings of the middle class, had been mainlythus embarked. Custom and favourable ex-perience had acquired for such investments anunimpeachable reputation for security.

Before the war these medium fortunes hadalready begun to suffer some loss (as comparedwith the summit of their prosperity in themiddle ’nineties) from the rise in prices and alsoin the rate of interest. But the monetary eventswhich have accompanied and have followed thewar have taken from them about one-half of