FINANCE—PUBLIC & PRIVATE.
[BY OUR CITY EDITOR.]
VARIABLE DIVIDEND STOCKS.
[To the Editor of the SPECTATOR.] SIR,—Some of the more important factors, both financial and political, which were discernible throughout the holiday season, now seem likely to exert their influence in the immediate future. With the reassembling of -Parliament, matters like the Irish Boundary question and the Russian Treaty must come prominently into notice, and while the City is not inclined to anticipate an actual `crisis with an immediate General Election, the possibility cannot be wholly ignored. As regards financial influences it has been recognized for some time past that financial activities were likely to be restricted pending the flotation of the German Loan, and it looks as though that operation would not be very long delayed. Meanwhile, it is suggestive that, in spite of a clear -recognition of these factors, the Stock Markets as a whole should have displayed remarkable steadiness. On the one hand, investment stocks have been kept steady by fairly favourable monetary conditions, by. vague anticipa- tions of some conversion operation a little later on, and also, to some extent, by the very 'uncertainties of the position which have prompted the more cautious to continue to support gilt-edged descriPtions. Neverthe- less, over the period of something like two and a half years, there has been an unmistakable tendency for activity to increase in what is generally known as the Variable Dividend -stocks as distinct from British Funds and other securities bearing fixed rates of interest. A very good idea of this tendency and the great appreciation which has occurred in capital values may be gathered from the following statement, based upon the monthly valuation of representative securities by the Bankers' Magazine. In the second column will be found the figures of the last valuation made about ten days ago, while in the third column is shown the increase or decrease during the two and a half years :- MovEmsarrs IN VARIABLE DIVIDEND SECURITIES.
000's omitted.
Jan., -Sept., 1922. 1924.
£ £ Inc. or Dec.
£ Brit. Rail. Ord. Stks. 179,610 232,363 + 52,753 Indian Rail. Stks. .. 16,234 19,261 ± 3,027 Colonial Railways .. 97,572 113,771 + 16,199 U.S. Railroad. Shs. .. 413,020 448,345 + 35,325 Foreign Railways .. 60,579 96,041 + 34,462 Brit. Bk. Shs. .. 148,017 175,372 + 27,355 Col. and For. Bks. 78,243 83,709 + 15,466 Brewery Stocks .. 35,014 56,707 + 21,693 Canals and Docks .. 13,465 18,807 + 5,342 Corn. and Indust. .. 255,508 360,956 +105,448 Elect. L. and P. .. 9,744 14,354 + 4,610 Finan., Ltd., & Invt. 18,169 23,265 4- 5,096 Gas Stocks .. .. 22,123 29,117 + 6,994 Insurance Shares .. 85,-913 123;312 -.4- Z7,399 Iron, Coal and Steel.. 55,160 46,439 - 8,721 Nitrate Shares .. 2,732 4,799 + 2,067 Oil Shares .. 169,266 112,618 + 56,648 Rubber Shares .. 6,390 8,242 + 1,852 Shipping Shares .. 24,149 27,514 + 3,365 'Tea Shares . 3,368 8,108 + 4,740 Telegrs. & Telephs. .. 33,165 32,961 - 204 Tram. & Omnibus .. 9,454 15,302 + 5,848 S. African Mines .. 60,953 82,058 + 21,105 Copper Mining Shs... 40,541 37,111 - 3,430 Miscel. Mining 7,569 5,568 - 2,001
It is impossible not to be struck with the extent to which shares of some of the Industrial concerns have appreciated during the period under review, to which, however, the heavy fall in the Iron and Steel groups constitutes a striking exception. Similarly, as regards the speculative markets which have also improved an exception has been the slump in Oil shares. In noting these movements allowance must, of course, be made for the fact that quotations were at an abnormally low level two and a half years ago, and it remains to be seen whether the hoped for trade revival will be suffi- ciently marked to justify a further improvement.-I am, Sir, yours faithfully,
ARTHUR W. KIDDY.
The City, October 1st.
Previous page
