FINANCIAL NOTES

DISTURBED MARKETS.

As noted in another column, the outstanding event of the past week has been the debacle in Government securities resulting from the statement in the House of Commons last week by the Chancellor of the Exchequer with regard to the financing of the Defence programme. At the moment of writing, prices have rallied a little from the worst, but the fall from a week ago is a severe one and, indeed, very few people had expected the reaction in the gilt-edged group to be so sudden and so sharp. Naturally, the fall in Government stocks has brought down almost automatically the prices of other fixed interest securities, and any activity in the markets during the week has been almost entirely confined to the speculative descriptions. Commodity prices keep very firm, and naturally there has been activity and strength in Armament shares.

* * * *

RAILWAY STOCKS DEPRESSED.

With the exception of the London and North Eastern, the leading Railway Companies have now published both their dividends and their reports. These have been fully as satis- factory as the market anticipated, but nevertheless prices have suffered a very general fall. In the first place, the_prior charge issues have given way sympathetically with the fall in British Government stocks and, in the second place, 4he Ordinary stocks, and to some extent the prior charge issues, also, have been adversely affected by the wages demands, a matter to which I referred very fully last week. Without going in the least into the merits of the case, there can he no question that until the relations between railway stockholders and the Wage earners,—for it seems fairer, to put it that way than saying between the workers and the management—assume a co- operative rather than an antagonistic aspect, Home Railways

as investments must remain under a cloud. • * * * *

EXPORTS EXPANDING.

Although full allowance must be made for the effect' of higher prices, the Trade Returns for January were distinctly more. encouraging, especially in the matter of Exports, which, compared with the same month of last year, showed an increase of over £5,000,000. Imports also expanded by £5,627,000. With the Returns for January there was also issued the analysis of the direction of our oversea trade for the whole of last year, and not the least encouraging feature disclosed Was the further growth in trade with the Empire. The proportion of our Imports derived from within the Empire advanced from 37i to 39.2 per cent. of the whole of the trade, and that of Exports front 48 to 49.2 per cent. ------- II * - * - -

OLYMPIA IMPROVEMENTS.

At the recent general meeting of 'Olympia l Limited, the Chairman, Mr. Louis Nicholas, gave some interesting informa- tion with regard to the extensive improvements which had taken place in the building, including special expenditure on decora- tions and repairs. These improvements include a new entrance hall and booking halls, with a covered way from 'Haminersmith Road to the main entrance hall, while a modern garage has been erected capable of holding a thousand cars and extensive alterations have been carried out in the Empire Hall, including the installation of a series of escalators from the ground floor to the top of the building. The trading profits for the year were practically the same; the reduction of £8,3oo in revenue was largely due to a reduction in the dividends received from investments.

(Continued on pcwe_3_42.). _ _

FINANCIAL NOTES

(Continued from page 338.) CHARTERED REVENUE INCREASING.

The latest Report of the British South Africa Company covering the year to September 3oth last is an exceptionally good one the profit amounts to £521,514 as against £301,727. The dividend of Is. per share and bonus of 6d. per share recently declared absorbed £5o9,000, leaving a balance to be carried forward of £605,401 against £593,091 brought in. Of the year's income, £325,550 came from dividends, interest and underwriting commission, and £115,942 from mining royalties and rents ; the last item shows an increase of £14,839. The Directors state that the royalty revenue included £94,445 in respect of 129,724 long tons of copper, averaging for royalty purposes £36 8s. per long ton of standard copper. The comparison is with a royalty in the previous year of £88,553 with copper at an average price of £30 3s. 3d. per ton. It will be seen, therefore, that the Company has gained greatly by the rise in the price of copper.

* * * * JOHN WRIGHT AND SONS.

At the annual general meeting of John Wright and Sons (Veneers) Limited, held last week, the Chairman, Mr. Arthur Wright, reminded those present that although it was the first gathering as a public company, the business had been founded in 1866. The balance-sheet presented was a thoroughly satisfactory one and it would seem that a prudent policy is to be adopted ; the Directors declared that it was imperative to commence by building up a reserve, so that £5,000 had been placed to a General Reserve Account. Even so, however, the Directors were able to recommend a dividend of 8 per cent. on the Ordinary Shares.

INCREASED GAS SALES.

At the recent Annual Meeting of the Wandsworth and District Gas Company, the Chairman, Mr. Frank H. Jones, said that in spite of the mild weather, there had been during the past year a satisfactory increase in the sale of gas, and given normal conditions during the current year, he thought a further increase might be expected. In view of the increase in the price of coal and in the wages of gas-workers it is not surprising that the price of gas has risen by one-fifth of id. per therm. The net result of the year's working came out at £268,422 against £245,511 for the previous year. The dividend recommendation of 7 per cent, upon the consolidated

stock was approved. A. W. K.

SUN LIFE OF CANADA.

A cable just received states that Mr. Arthur B. Wood, President and Managing Director, presided at the 66th Annual Meeting held on February 9th, at the Company's Head Office, Montreal, Canada. The Annual Report reflects the general improvement in business conditions in Canada, Great Britain, the United States, and in other countries where the Company secures business. In 1937, dividends to participating policy-holders are to be increased. The statement shows an increase in assets for the year of over £4,000,000. The total assets now exceed £159,00o,000, the highest figure in the Company's history. The total assurances in force show an increase over 1935, and new business for the year was well maintained at over £45,000,000. The securities are carried in the balance-sheet at values which in the aggregate are lower than market values. The amount of Government and other bonds is now over £63,000,000, and represents 40 per cent, of the assets. The total income amounted to over £33,000,000, and the excess of income over disbursements amounted to more than L12,000,000.