FINANCIAL NOTES.
Quite the Outstanding feature of the Trade figures for the month of May was the remarkable size of the imports, which totalled over £122,000,000. This • is the highest point touched for any month since 1920, and in that year it must be remembered that the situation was affected by . the abnormally high level of prices. At the same time, too much significance, perhaps, should not be attached- to the figure, because no less than £8,000,000, of the increase was due to foodstuffs, and a closer investigation shows that there must have been an exceptional falling off during previous months, the actual total for the five months being pretty much in accordance with that for the same period of last year. In some directions, however, our imports-that is to say the exports from sonic of the Continental countries-seem to have been stimulated by the position of the foreign exchanges, and the circumstance is very suggestive and gives room for thought. Our exports for the month of May were almost unchanged from the corresponding month of the previous year, though there was a considerable advance over the figures for last April. Moreover, the figures of the exports are really a little better than they look, because under the head of coal there was a decline of about £4,000,000, the exports of which a year ago were abnormally large. A good feature of the returns for the first five months of the year is the fairly substantial increase in our exports of manufactured goods.
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As was to have been expected, the reconstruction scheme put forward by the directors of Crosse and Blackwell is a drastic one and is, needless to say, a striking commentary upon the optimism displayed in the original prospectus. The net tangible assets as on December 31st last are placed at £2,533,000 and good- will is entered at £1,450,000, making a total of £3,983,000. Liabilities amount to £1,252,000, leaving £2,731,000 to represent the paid-up share capital of £7,354,000, con- sisting of £3,000,000 of first preference, £1,741,000 of second preference and £2,613,000 of ordinary shares. It will be remembered that only the first preference shares were directly issued to the public, and, therefore, it is satisfactory to note that the reconstruction scheme gives first consideration to those shares which are to be written down from £1 to 15s. The second preference shares are written down from £1 to 4s. and the ordinary shares from £1 to is. Moreover, the first preference shares are now to be entitled to a further dividend of 2f per cent. after the ordinary shares have received 10 per cent., so that if the reconstruction scheme proves to have been sufficiently drastic, and- good results are secured by the company, there should be a prospect of the first preference shares ultimately receiving their original rate of dividend. In fact, the directors appear to have done . their best to, obtain some kind of redress for the shareholders to whom the direct issue of first preference shares was made.
For the moment, at all events, the reconstruction scheme of the Dunlop Rubber Company, to which I referred last week, must be regarded as in abeyance. At the meeting held last Monday it was opposed by the Parent Tyre Company, which, by reason of its position as holders of two-thirds of the " C " preference shares, was able to block the scheme. It is, therefore, held up for the moment, and it looks as though no alternative plan can possibly become effective until much later in the present year. A. W. K.
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