No discussion of Life Office Investments before the Students' Society would be complete without reference to the five canons laid down by Mr A. H. Bailey. Their influence on the investment practice of Life Offices has been almost universal and continuous since they were enumerated in 1862, and when it is reflected that the great majority of Life Offices, although their annual profits are comparatively very small in relation to the very large accumulated funds which they administer, nevertheless emerged from the War period, and the enormous depreciation of securities which it entailed, stronger than ever before, no apology need be made for restating the principles which have been followed with such successful results.

They are as follows:

1. That the first consideration should invariably be the security of the capital.

2. That the highest practicable rate of interest be obtained, but that this principle should always be subordinate to the previous one, the security of the capital.