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TEE BANK- DIVIDENDS.
The big banking institutions have now all announced un- changed dividends feomthose of a year ago, though at this time of year no figures are available to show whether profits have been larger or smaller. The dividends, of. course, will have been slightly more costly ()icing -tO-the lowef rate of Irleonie Tax deduction. In the case of the Midland Bank, for instance, this means about £28,000 extra in the amount paid to share- holders, though, of course, the profits of the year will be sub- beet to lower tax when they come to be assessed. Most of the anks, as disclosed by the half-yearly statements so far pub- lished, show a reduction in the.otal of their Deposits, but, even so, the profitable employment of their resources must have presented many problems owing to the shrinkage of Advances, usually the most remunerative item among the assets. The rates of discount on Treasury Bills have been slightly higher than they were a year ago, but owing to the contraction of the amount of Bills outstanding and also to the policy of the banks in establishing minimum rates for the purchase of Bills from the market, their Bill holdings. have undergone very consider- able shrinkage. On the other hand, the banks have lent more money at call and short notice, chiefly, no doubt, to the Stock Exchange, on gilt-edged security, and they have also increased their own investment holdings substantially.
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