10 JANUARY 1931, Page 32


In another column I make a more extended reference to the general outlook in the light of recent developments, but as regards the general monetary outlook reference may be made here to its effect upon the policy of Building Societies. The action taken by the Abbey Road Building Society has commanded general approval as being sound, while at the same time it has also created a good deal of attention and interest. During recent years that society has paid to its holders of fully-paid shares a dividend at the rate of 4 per cent. per annum plus a special bonus of per cent. per annum, but accompanying the dividend warrants which reached the shareholders on the first day of the New Year came an intimation to the effect that on June 30th next the Society ".will pay a bonus at the rate of per cent. per annum for the half year ending on that date. From and after July 1st, 1981, dividend will be paid at the rate of 4,1. per cent. per annum and no bonus will be paid for the half year ending December 81st, 1931." The effect of this is that the society pays at the rate of 5 per cent. net and tax free for the first half of 1931, and at the rate of 41 per cent. net and tax free

for the following half year. * * * *