Financial Notes
FAVOURABLE MARKETS.
THE Stock Markets during the past week have been under the shadow of the national mourning and on Tuesday, the House was closed and business was practically suspended throughout the City. At the same time, the tone of markets, as a whole, has been favourable, one of the chief influences being the settlement of the coal dispute. This event was the occasion of deep satisfaction, for, at the present time, anything in the nature of an industrial dispute would have been quite out of harmony with the spirit of national unity which may be said to have been intensified by the unifying influence of a national. sorrow. Not unnaturally, therefore, there has been a general improvement during the week in the shares of industrial com- panies, while a further good feature has been the rise in home
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Financial Notes -
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railway stocks, occasioned by the decision of the House of Lords with regard to the rating question.
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SOUND CITY (FILMS), LIMITED.
All the present indications suggest considerable activity in the near future in new capital issues, and among these is an Wale to be made next week of 135,000 6 per cent. cumulative participating preference shares of £1 each at par and 135,000 ordinary shares of 5s. each at 6s. per share in Sound City (Films), Limited. The company will be engaged in the production of British pictures, the demand for which appears to be steadily increasing. Preliminary details which have been published state that for the current year earnings are estimated at a figure equal to over six times the 6 per cent. Preference dividend and sufficient to pay the full participating dividend to which the Preference shares are entitled, leaving a large balance for the Ordinary shares. The issue is being sponsored by the British Pacific -Trust, Limited, and subscription lists are to open and close next Tuesday.
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BANKING IN AUSTRALIA.
At the recent annual meeting of the Union Bank of Australia, the Chairman, the Hon. Edmund W. Parker, was able to present a very satisfactory report. This was the more welcome, as, in Australia, as here, conditions for bankers have been difficult through the low interest charges on loans. Nevertheless, gross profits increased by over 123,000 and the balance-sheet is a thoroughly liquid one.' When dealing with the general conditions in the Commonwealth and New Zealand Mr. Parker said that although the balance of trade in Aus- tralia's favour declined last year by £27,485,000, as compared with the year to June, 1934, the tendency since last June had been reversed, showing a good balance in favour of the Com- monwealth. Last year's decline was, of course, connected with the lower value of the wool clip. Dealing with the big improvement since in the wool situation, Mr. Parker referred to the increase in bales sold and the ride in prices.
A. W. K.
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