Investment and Financial Notes

HOPEFUL MARKETS.

Avraoccu business in the Stock Markets has slackened a little when compared with the extreme activity of last week, the general tone on the Stock Exchange keeps exceedingly firm. The optimistic speech of the Chancellor of the Exchequer at the recent Bankers' Dinner has undoubtedly given a fresh fillip to the market for Industrial shares, and the co-operation which is now going on between Great Britain, France and the United States in the matter of exchange operations—to which I make a fuller reference in another column—is also regarded favourably as calculated to lead on gradually to a steadying of the exchanges in a manner helpful to international trade. British Funds and kindred securities keep, very steady, but the upward impetus is not great, possibly because it is felt that sooner or later more active trade must inevitably have some influence, however slight, upon the course of Money rates. In (Continued' on page 664.) - Investment and- Financial Notes

(Continued from page 663.) •

the speculative markets interest continues to centre upon some of the Gold Mining issues ' as it is felt that present condi. tions promise stability in the matter of the price of gold not very far from the present level.

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INVESTMENTS IN THE STATES.

Although so near the disturbing influences of the Presidential Election, the general feeling with regard to the industrial outlook in the United States is fairly hopefiff even after allowing for the unbalanded state of the American budgets. There are a good many, however, who feel reluctance in investing directly in dollar securities, not merely by reason of the vagaries of Wall Street, but also by reason of the vagaries of the American exehange. Such investors may, perhaps, be reminded that it is possible to obtain some partial interest in American securities through holding the stocks of English trust ,companies, a, certain portion of whose investments are in American Securities. ' In the case, for example, of the Scottish American Investment Company, rather more than 50 per cent. of its resources are invested in America, yet the high credit enjoyed by the company may be gathered from the fact that at present prices the " A " Stock, representing £1 units, stands at a price giving a yield of just under 2 per cent. on last year's 5 per cent. dividend. It may be pointed out, however, that some few years ago, when American securities were standing at a high level and the companies were paying big dividends, the Scottish American Investment Company paid 20 per cent, on its " A " capital, and distributed a capital bonus of nearly 54 per cent. It will be seen, therefore, that there are some speculative attractions attaching to the Stock

at its present price. - • * * * *

SCOTTISH STOCKHOLDERS' INVESTMENT PREFERENCE.

Another Investment company which has a considerable proportion of its resources invested in America is the Scottish Stockholders Investment Trust. In this case, however, no dividend has been paid since 1931 and the MOO Stock is mioted at the low price of 24 and the 51 per cent. Cumulative Pre- ference Stock at 88. The Preference Stock dividend itself was in arrears to the extent of 111 per 'cent. at November last and the arrears now amount .to 14 per cent. Last year a dividend.was paid on the Preference Stock at 31 per cent., and, in view of the improvement -which is now taking place in American securities, this Preference Stock also is not without its vecuhitive attractions as a lock-up. In fact, many of the stocks of English Trust companies holding securities in the United States stand at a price giving a com- paratively small yield to the investor, and that cifeitnisTance is due to hopes of a further appreciation in the American securities held by the Companies.

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FRE§II CAPITAL ISSUES.

The past week has been remarkable for the revival of activity in new capital issues. As regards those of the trustee type the applications for a Manchester Corporation 3 per cent. Loan at 991 were on so large a scale that applicants for large amounts 'received only 6 or 7 per cent. of the amount applied for, and small applications up to £500 were eliminated altogether. Following closely upon the heels of the Manchester issue's success comes the announcement of a Bristol Loan for £3,000,000 in 3 percent. Stock at the price of 991, whose date of maturity ranges between .1958 and 1903.

* *" * * MORRIS Maims. .

The activity in new capital issues has not, 'however, been confined to those of the trustee type and considerable interest was taken in the announcement that the capital of Morris Motors is being increased from /5,269,000 to 15,650,000, of which £3,000,000 is in Preference form and the remainder In Ordinary .Stock transferable in 5s. units. Qt: the £2;659,000 Of Ordinary Stock T500,000 has been sold to a financial 'grcittp 'and it is this capital in the form of 2,000,000 5s. stock units which is to- be" marketed at a price around 38s. Yet anotber Impending issue of an interesting kind is in connexion with the &aversion of Philip Hill and Partners, Ltd., into a public company, Which Will be' making a public .issue of Preference Shares and Ordinary-Shares. The company has been registeied With a nominal capital of 15,000,090, and ashes will be made if 1,25090 Preference' Shares of 11 each at 21s. and an efinal number of 5s. Ordinary Shares at 15s. The company will Woritinual Oa page vi.)

Investment and Financial Notes

(Continued from page 664) continue iIr the _Chairmanship of Mr. Philip E. Hill, who will act as Managing Director for seven years. The Vice- Chairman will be Sir Edward Mountain, NO Mr: Hubert Meredith will be Assistant Managing Director. Philip Hill and Partners, Ltd., are, of course, well known in connexion with a number of important new issues which have been made