FINANCE AND INV ESTME
By CUSTOS
WHILE there is nothing approaching a general revival in the markets investors have been sufficiently impressed by the war to indulge their post-witfancies in a modest way. Shares as Shell, Burmah Oil. Harrods, the depressed Far Eastern covering a host of rubber and tea shares, the Indian exchange and mining enterprises, have all been supported. So have and catering shares, on the strength a their current earnings as post-war prospects. By contrast, fixed interest sec especially the long-dated and irredeemable gilt-edged stocks, suffered from neglect. One of the markets in which speculative buying is most ap just now is South American Government and railway bonds. well recognised in Throgmorton Street that all the South Am countries are doing well out of their sales of strategic ma while their imports are stringently curtailed by the reducu shipping facilities. Higher export proceeds unaccompanied expansion of imports are greatly strengthening the exchange of the South American countries. This can only mean repat of sterling debt, an easier remittance situation and, in some ins a better deal for sterling bondholders. Whether this .impros will outlast the war it is impossible to predict, but market val have latterly been so depressed that a recovery movement is justified.
MARKS AND SPENCER PROFITS
In view of increasingly stringent restrictions on supplies, holders in Marks and Spencer, the chain stores undertaking, been well prepared both for a reduction in profits and a m cut in dividend. As things turn out, the expected fall in has materialised, but the dividend on the ordinary capital is tamed at 35 per cent. Net profit for the year to March 31$ heavily from £2,425,351 to £1,583,088. The latest figure was s after providing £467,194, against £456,574, for depreciation, re renewals, &c., and after covering a contribution of uns amount under the War Damage Act. The maintenance 35 per cent, dividend rate, in face of such a contraction in t profits, has been due entirely to the sharp reduction in the a provided for _taxation. Under this head the charge is £47 which compares with £1,519,961 in the preceding year. It a reaconable inference that the taxation charge for 1940-41 sented an over-provision. Transfer to staff benevolent and pe fund is held at £25,00o, and the carry-forward is raised by f22 to £571,939. The company therefore enters the current fin year with something in hand to meet what looks like an inc reduction in trading profits. At 35s. the 5s. ordinary shares 5 per cent.
RAND MINES' RESULTS
Profit figures for 1941 published by Rand Mines underline again the remarkable stability of income of this Kaffir finance h Total profits of £986,600 are the highest since 1938, while the carried to the appropriation account is reinforced by a I £125,684, representing a surplus on investment purchases and After maintaining the dividend at the 16o per cent, rate, has been in force since 1936, the board has increased the appropriated balance by £193,649 to £1,375,908. Apart from published investment reserve account of over £3,5oo,000, there hidden reserve in the substantial excess of the market valu investments over the book figure. A summary of the 1941 of the gold mines of the Central Mining-Rand Mines group that the tonnage milled rose from 2o,615,30o to zi,o68,5oo. working profits were down from L12,211,096 to L11,088,828. Mines' 5s. shares stand at £6, at which the yield is over 61 per
TRUSTEE BANK MERGER
For a movement which has accumulated nearly L400,000, the country's small savings the trustee savings banks have re little publicity. Even in the two and a half years of war theY been the means of getting in about £8o,000,000 and have tailed well with the efforts of the National Savings Committee the Post Office Savings Bank. In the London area the tr tanks have not found No fertile a field as in the provinces Scotland, but the merging of the two London institution Finsbury and City of London and the London Savings promises to accelerate progress. Funds of the combined instl will amount to nearly £12,000,000.
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