ABSTRACT
WE ALWAYS associate the idea of permanence with our conceptions of investment, but such is the fleeting nature of things that comparatively few words are now known as absolute terms, and thus even the expression investment has its time limitation. The permanent lodger who is considered as much a fixture as the household gods of his habitat, is not always true to his appellation, but frequently announces to his landlady his intention to depart. In like manner the investments made by insurance companies are subject to the great law of change, for however long the term of such investment may have been intended, the actual duration often falls far short. The explanation of this is twofold. Either the security is deemed insufficient, or the return is not considered ample enough, and so the loan is brought to an end. It is undoubtedly an object with companies to invest as much as possible in a permanent stock, and the gilt-edged security is the only one to be availed of in this way. This class of security is the liquid asset of the company, for it is readily convertible into cash on emergency. It also looks well on a balance-sheet and gives stability to a company.
