6 JULY 1944, Page 22

FINANCE AND INVESTMENT

By CUSTOS

IN the markets it is now a tussle between the stimulating ne from the major war fronts and the restraining influence of the fly' bomb. On anything but the short view the sort of news now comi from White Russia would swamp all other factors in the investme equation, and it is noticeable that whenever it gets the least e couragement the market shows its appreciation of the real situati by putting prices higher. One cannot resist the conclusion th there is still a considerable banked-up demand, of both the inve ment and speculative type, which will find expression as soon present restraints are relaxed. Those who fear that the rise mi carry security values to unjustified levels will welcome the pau but I cannot help feeling that weight of money will make its influen felt still further in the coming months.

CABLE AND WIRELESS POSITION

For some time past the Ordinary stock of Cable and Wirel (Holding) has been regarded as an equity carrying a 4 per c dividend, and there is nothing in the 1943 accounts to prompt revision of this view. In his survey of the financial position Cable and Wireless, Limited, the operating company, Sir Edw Wilshaw discloses that although no definite agreement has reached on taxation liability, a fairly clear idea of the amo eventually payable has now been formed. He adds that the am set aside in earlier years appear to be sufficient. It seems a logi inference that the disclosed profit figures of the operating compa which form the principal source of revenue for the holding c pany, are not likely to fluctuate very widely in war-time conditio One is impressed in reading Sir Edward's review by the fr evidence it contains of the vitality of the Cable and Wireless and taking. There seems to be little room for doubt that, given continuance of Empire support for an Empire policy in communi tions, the combine will continue to function to the advantage of stockholders and users. While the post-war outlook is obviou bound up with technical development, the chances seem to be revenue will at least be sufficient to cover the current 4 per c rate on the Ordinary stock of the Holding company. Quo around £79, it yields just over 5 per cent., and should be well wo holding as a semi-speculative investment.

UNIT TRUST ACCOUNTS Within the next few weeks one should see the Governme intentions in the matter of unit trust accounting embodied in legi tive form. Meantime, two groups have followed the example last year by Municipal and General in issuing accounts for information of sub-unit holders. Trust of Bank and Insur shares has chosen to publish actual figures, whereas the Orth Group has issued accounts, on the Municipal and General m in percentage form. In my view, the percentage figures, altho they differ fundamentally from those with which investors in ordi public companies are familiar, are the most suitable in this parti context. They give sub-unit holders the kind of information quired to enable them to form a view of the expenses incurred making their investments, and they also provide a basis for parisons as between one group of unit trusts and another. It pity that whatever accounting pattern is selected the figures bound to be complicated, and not readily comprehensible to general body of investors.

CALCUTTA TRAMS DECISION

When it is known that the Government of India has accumul something like L650,000,000 of sterling balances in London there be no surprise that following the repatriation of India's public on this side, there should be a tendency to buy up utility and investments in India at present- owned by British investors. January 1, 1945, the Calcutta Corporation is to purchase the Cal Tramways Company under the powers conceded by an agree made in December, 1899. The basis of valuation is 25 years' chase of the difference between the average gross annual re and the working expenses for the pasi seven years. Naturally market has been busily engaged during the past few days in cal ing the probable price at which the Ordinary shares will be over and considerable variations have been disclosed. The s optimists have estimated as high a price as 46, while the form of dealers in the shares work out the break-up value at over £4.