FINANCE AND INVESTMENT
By CUSTOS
NEWS from the war fronts has scarcely been of the kind encourage the optimists in the stock markets, and nobody can surprised at the modest relapse in quotations. Potential buy have been content to wait, and here and there attempts to snat profits after the recent rise have given jobbers an opportunity to p a little stock on their extremely bare shelves at rather lower pric Cynics who argue that recent improvement was based on f optimism, and, consequently, that a really substantial downw adjustment of security values is now overdue, are wasting th breath. So long as the main body of investors steadfastly re to sell and the volume of investible funds increases, then, in market which is denied any new issues of capital other than Government's loans, the basic trend must be upward. I do expect to see any fall in quotations which could be conside substantial in relation to the recent rise.
KAFFIR DIVIDEND CUTS That is, of course, a broad view. There will doubtless individual instances of heavy falls during the war, as in the P war years, and some groups will fare worse than others. It is plain, for example, that the gold-producing companies of the are being hit severely by taxation. Only three mines have announ increases in their half-yearly dividends, and there are twenty- decreases. It is a case of rising costs and taxation unaccomp by any further increase in selling price. Unless the come decide to step up the grade of ore milled, the downward tend of available profits must continue. On a post-war view the dividend prospects look reasons always assuming that gold retains its status in the interna (Continued on page 591)
FINANCE AND INVESTMENT
(Continued from page 59o)
orency set-up. On that question there is room for divergency of pinion, and I feel that whatever the answer proves to be, Kaffir iareholders are in for some worrying moments when the serious iscussion of post-war currency arrangements begins. For this Cason nobody should hold too many eggs in this basket unless e has made up his mind that goid is here to stay.
SHIPPING EARNINGS FALL
From the 1941 accounts of the Court Line it is abundantly [ear that tramp shipowners are still far from satisfied with the iovernment's rates of hire under the requisitioning scheme. Earn- igs from voyages fell sharply, and represented only 5.-; per cent. n the basic value of the fleet as determined by the Government, s against the 5 per cent. interest on capital and 5 per cent, for epreciation they were intended to provide. Negotiations to remedy
situation, which is closely linked with the problem of fleet placements, are still going on. Meantime, shipping companies' alance-sheets look more and more like those of investment trusts, fixed assets are reduced by losses at sea and their place is taken v cash and gilt-edged investments.
STEEL GROUP DELAY
I see from the accounts of Armstrong Whitworth Securities that substantial sum is expected from the liquidation of Partington teel. It is now four months since Partington shareholders appointed liquidator to draw up a scheme, but nothing has materialised. his is the sort .of delay one gets in war-time, which seems to me
o have no real justification. It should be a fairly simple matter
o formulate a plan for distributing the assets among the various lasses of shareholders. When Partington winds up, the way will e cleared for Pearson and Knowles to begin arranging its affairs vith the same end in view. Finally, we should see Armstrong l'hitworth Securities disappearing. A chapter will then be closed th'ch has turned out much better reading for shareholders than temed possible a few years ago.
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