RISE IN METALS AND RUBBER.

FINANCIAL NOTES

GREAT speculative activity in commodities, and especially in Rubber and Tin, has contrasted during the past week with general dullness in most departments of the Stock Exchange. Spectacular advances have taken place in Tin which at one time was over £300 per ton as compared with £216 a year ago, and while the advance his been accompanied by much speculation there is no doubt that the basis of the r i ise l to be found in large genuine demands, with great shortage of the metal. In the case of Rubber, too, the present price of the commodity, which seems -likely to be maintained, gives a fine profit to practically all the rubber-producing companies, and although there is not a shortage of rubber such as that noticeable in some of the metals, a considerable 'reduction in stocks has aided the . upward movement in price. The dullness of most departments of the Stock Eitchange can be attributed, in the main, to Budget uncertainties and to a further -factor referred to in a subsequent paragraph, namely, the effect of realisations of investment and other securities by. French investors for exchange into- the- new French Loan.

.* * * * FRENCH LOAN SUC.CESS.

Quite the outstanding feature of the past week has been the great success which attended the French National Defence Loan in 4 per cents., issued at the price of 98, the Loan running for a maximum period of sixty years, reduced to an average of forty years by an extensive Sinking Fund. • So great Was the success of the first portion of the Loan for the equivalent of about £475000,000 that the second portion was issued imme- diately afterwards, bringing up the total Loan to the equivalent of about £77,000,000. To ensure the success of the operation special arrangements were made whereby holders could obtain payment of coupons and princiPal in certain foreign currencies, and notably iii ' dollars and sterling. This' course Was pursued to encourage any who might still be timorous with regard to the future of the Franc. How far the success of the Loan has been accompanied by shipments of hoarded, gold from here or by realisations of securities bought in this market on. French account, it is impossible at present to say, but undoubtedly such realisations have been fairly extensive and have contributed to the dullness of our investment markets. If, however, the French Loan should. be followed by a wise conduct of the National Finances in France, leading to a return of Confidence On the part of the French public, the whole movement is one to be welcomed rather than otherwise.

* * * * BUILDING SOCIETi"S PROGRESS.

At the annual meeting of the Huddersfield -Building Society, held last week, the President, Mr. J. D. Eaton Smith, was able ' to report a further increase in all spheres of the Society's activities. The assets at the end of last year amounted to £13,730,908 as ccinpared with £13,247,378 in the previous • year. - Shareholders' and Depositors' ' accounts totalled £12,895,530, against £12,506,574, while the allIODDI advanced to borrowers during the year was £2,005,979 compared with £2,072,195 for the previous year. The profits for the-year enabled the Directors to declare a bonus of z per cent. to the investing members entitled thereto. The Reserve Fund now exceeds £5oo,000.

* * * * THE Barrszonc's PROGRFSS.

The latest report of the Britannic Assurance showed further progress achieved during the past year, the total funds increasing by £1,858,465 to £27,687,738. The total income for the year, excluding the General Branch, was also £224,000 higher at £6,435,993. Both in the Ordinary. and Industrial ,Branches there was an increase in the sums assured and in the Premium Income, while from the General Branch, where the whole of- the business was re-insured, the balance to Profit and Loss was £9,475 against £7,250. Inclusive of £523,295 brought in the Ordinary Branch surplus disclosed was £510,628 as against a valuation surplus of £446,951, including .£136,75x brought in a year ago. The bonus rate was repeated at kr as. P er kroo assured and £40,000 was transferred to Investment Reserve: In the Industrial Branch the surplus was ‘774,330, (Continued on Page 564.)

FINANCIAL NOTES

(Continued from page 562.)

including £135,508 brought forward and £6o,000 was trans- ferred to Investment Reserve; a sum of £225,000 (the same as a year ago) was set aside for policyholders. The present bonus scheme, which expires this month, is to be continued for a further two years.

* * * * RISING EXPORTS.

The outstanding feature of the Foreign Trade Returns for the month of February was the welcome improvement in the Exports. For January the excess of Imports over Exports was over £3r,000,000, but for February the excess was only £26,000,000. On the tither hand, as compared with February of last year, the excess of Imports still shows a substantial increase of £4,645,000. The improvement in the trade balance for February was largely due to a substantial increase in our re-export trade, especially in our exports of wool and hides. * * * *

BANKING IN INDIA.

The report of the Mercantile Bank of India for 1936 shows considerable improvement in general results, for the net profit IS £181,732 against £174,266 in the previous year. The dividend is maintained at 12 per cent, on all three classes of shares, and after placing £12,000 to Pens:ons Fund and £25,000 to Contingencies, as before, £20,000 is written off Premises against only £ro,000 last year. The balance-sheet shows a material increase in the Deposits.

* * * *

LONDON LIFE PROFITS.

The figures of the London Life Association for last year make a good showing, while a feature of the statement is the low expense ratio disclosed, being only £5 5s. Sd. per cent. of the premiums. The new business for the year of £2,701,930 is rather less than for the previous year, the whole of the reduc- tion being under the non-participating classes. Evidently the good bonus record attracted still more business under the re- versionary bonus and reduction of premium classes. The funds increased by £786,000 and the net rate earned on the valuation liability was £4 3s. rid. per cent.

* * * *

HUDSON'S BAY RECOVERY.

The shareholders of the Hudson's Bay Company may be congratulated on the progress which is being achieved. The latest report states that the net profits for the past year amounted to £226,695, after charging depreciation of £150,000. It is now proposed to discharge all arrears of dividend on the Preference capital, although the dividend has been in arrear as from June 30th, 1930. This will cost £350,700, leaving £33,211 to be carried forward. On the basis of the net profit shown in the financial statement, it would appear that last year's earnings, if they had not been required to cover the arrears of Preference dividend, would have represented approxi- mately 9 per cent. on the Ordinary capital. This is a wonderful recovery from the position of a few years ago. * * * *

THE BUILDING INDUSTRY.

At the recent annual meeting of the London Brick Company, Limited, Sir Malcolm Stewart, the chairman, made some interesting comments on the general outlook for the building industry, pointing out, among other things, that the slight falling off in house construction by private enterprise in the South had been offset by the increase in Government-assisted - • housing. Outside London and the Southern Areas, said Sir Malcolm, there has been increased building 'activity: At the end of the meeting the capitalisation of L200,000 of un- divided profits and the distribution of a bonus issue of one new share for every £9 of stock held were approved. During the proceedings the chairman paid a tribute to the late deputy- chairman, Sir Harry Stewart (his father), Sir Malcolm reminding shareholders.of the company's early days and of the conditions

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