PALESTINE GROUP PROSPECTS -
First thoughts on the Palestine report do not suggest that this judgement of Soloinon need cause investors much worry. The only trustee investment involved, the £4,475,000 5 per cent. loan of 1927, is guaranteed by the Treasury and is redeem- able 1942-67. In present conditions of cheap money the stock must be looked upon as a short-dated issue, and I see no reason why partition should affect its security provided proper safeguards are . observed. Under the Commission's plan the public debt will be divided between the proposed Arab and Jewish States, and it is suggested that the allocation should be determined by a Finance Commission. As for the trading concerns, already last year's disturbances have been reflected in a sharp fall in quotations, and my own view is that both the political risks and any effects of, the partitionproposals
are now adequately discounted. -
At 35s. Anglo-Palestine Bank £i shares are rzs. 6d. below last year's peak, and yield over 6 per cent. on the current divi- dend. The bank's main branches are in the Jewish State and in the Mandated area Jerusalem Electric, which has nail raised its revenue from £60,147 to £65,160 and its -dividend from 5 to 6 per cent., is:a self-contained unit. At 27s., againSt 44s. at one time last year, the ft shares yield 4 per cent., ungenerous in view'of the scope for further expansion, givens friendly working of the Commission's scheme. The only important company which comes within Arab and Trans- Jordanian territory is Palestine Potash, which owns a concession at the southern end of . the. Dead Sea. The Li: shares have fallen recently from 18s: .6d. to 12s., which seems to me to do less than justice to ;the possibilities Of --a company still in the
early stages of .develoPitient. •
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