PRUDENTIAL INVESTMENT POLICY.
Like the chairmen of many other insurance companies, Sir Edgar Horne of the Prudential Assurance Company found nothing very disturbing in last year's fall in security prices. Indeed, he pointed out to the shareholders that the fall was not entirely a matter for regret, for it enables the company to earn a higher yield on its new investments, and the main- tenance of a satisfactory investment yield is essential to the company's business. For a concern of the financial strength of the Prudential the argument is quite valid. As Sir Edgar pointed out, there is still a large surplus of market values over ledger values, the company's reserve funds remain intact, and no redeemable security stands in the books at a higher figure than its ultimate redemption price. J. D. M.
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