Financial Notes

" ALSBAI.D.”

Jr is seldom that the .course of Stock Exchange price move- ments is determined by the interpretation of a single word. Such, however, was the case on Monday of this week when, after a dull opening, Stock Exchange prices forged ahead, and there was a rally in all departments. During the latter half of last week marketS had become distinctly depressed on the European political .situation and the state-of -tension at the Conference in 'London; On Monday Morning; . it was stated that Germany-would only join the Conference in London if it were understood, first, that she would be received as an equal, and, second, that there would be discussions " forthwith " on the Pact proposals of Germany of the 7th of this month. France had previously refused to enter into any negotiations until there had been an actual or symbolic withdrawal of troops from the Rhineland, and this message from Germany, therefore, was at first taken as indicating a deadlock. By mid-day, however, it became known that there had been a misunderstanding arising out of the transi lation of the German word " alsbald " which should have been interpreted not as " forthwith " but as " in due course."

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Financial Notes

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This was felt to be a more reasonable condition, and tension, if not at the Conference, at all events in the City, was cased materially.

AN AVIATION BONUS.

Shareholders of the Foircy Aviation Company have been treated to a very pleasant bonus in the shape of a new issue of 10s. shares to be offered to holders of the present Ordinary Shares at the price of 12s. 6d. per share for every share now held. In as much as these existing shares stand at over 41s., it will be seen that the share bonus is a substantial one. This new issue of capital will provide the Company with over £600,000, which, doubtless, is required in connexion with the present activities in the Aviation industry.

* * * * SeorriSII LIFE.

At the recent meeting of the Scottish Life Insurance Com- rany, the President, the Duke of Athol!, was able to present a most excellent report showing that the Coinpany had valued its Life Assurance contracts on the conservative basis of 21 per cent. interest in company with the mortality experience of the • new 1924-29 Tables, a basis which has involved a considerable strengthening of reserves. Annuities, as before, have been taken at 3 per cent., which rates allow a substantial maigin «impaired with the net rate earned, which, last year, was 14 4s. 4d. per cent., a reduction of only ls. 6d. per cent. from I he previous year's rate. The Chairman, Sir John MacLeod, also wade it clear that the bonus of £2 2s. per cent. which the Company is distributing had been more than earned on the basis of the old method of valuation and the sum brought into Revenue Account from profits on certain closed invest- ments, had been put back into Reserve and,not diStribuited. lie said they could easily have valued at .21 per tent; :'by • bringing in a further sum front realised profits, but the Directors considered that 21 per cent, rate more appropriate to t he present outlook.

BANKING IN AUSTRALIA.

The moderate improvement recorded .a year hp in the profits in the Bank of Australasia has been maintained for the past year, and the net profit, after providing for all:bad and doubtful debts and rebate on bills and transfer to the credit of Contingency Account, amounts to £272,857 as compared with £265,087 a year ago. The Directors are now paying a final dividend of 4s. 3d. per share, less tax, making a total distribution for the year of 71 per cent., less tax, as compared with 71 per cent. a year ago. The carry-forward is also increased. The balance-sheet is a good one and-reveals some increase in general activity of business in Australia.

EASTERN BANK PROFITS.

For the year 1935, the Eastern Bank earned a net-profit of £125,386, after appropriations to Contingency Account, out of which full provision had been made for bad and doubtful debts, and the balance available for distribution, including the balance brought in, amounts to £177,152 as' compared with £181,767 a year ago. The Directors again declare a dividend of 6 per cent., leaving £62,000 to Ile carried forwardns com- pared with £51,767 brought in. It will be remembered that last year a special jubilee bonus of 3s. per share was diStributed in addition to the 0 per cent. dividend. The balance-sheet

• shows a -slight increase in acceptances and a moderate'-increase in deposits which now stand at £6,799,000. Advances, too, are rather higher and give evidence of increased banking stet ivity.

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EQUITY AND LAW,

The Equity and Law Life Aisurance Society has made a good start in the first year of its triennium (hitherto the Society has adopted quinquennial valuations), the Chairman, Sir Dennis Herbert, being able to state at the recent annual meeting that the past year had established another record in the matter of business. Sir Dennis also gave a very inter- esting risume of the progress achieved by the Society during the past decade. He stated that the total insurances in force at the end of 1925 were £12,800,000 ; five years later they were £16,100,000, and at the end of last year they amounted to no less than 127,500,000. Moreover, the total funds, which at -the end of 1925 amounted to £6,900,000, had reached £9,300,000 at the end of 1930, while today they are well over £21,000,000. The new business of the Sciciety for last year was considerably larger than for the preceding or any previous year. The net rate of interest earned during the year on the Society's funds, excluding reversions, was £4 7s. per cent., or only 9d. less than the average for the last quinquennium. The expense ratio of the Society, too, was satisfactory, amounting to about 13 per cent, after making all necessary adjustments.

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INTERESTING BANKING APPOINTMENTS.

Two interesting announcements were made at the commence- ment of this week by the Midland Bank Limited. The first was concerned with the retirement of Mr. J. G. Buchanan, the Joint General Manager, the retirement taking place after nineteen years' service. Mr. Btichanan's abilities have obtained wide recognition in the City and the further announce- ment that he had been appointed to a seat on the Board of the Midland Bank Executive and Trustee Company commanded general approval. The other announcement was that upon the retirement of Mr. J. G. Buchanan, Mr. C. T.- A. Sadd had been appointed Joint General Manager and Mr. G. A. Castle as an Assistant General Manager. Inside the Midland Bank the abilities of Mr. Sadd have long been recognised and his qualities have more recently become known to the City and the public, by reason of his lectures and writings on financial and economic subjects.

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STOCK EXCHANGE CHAIRMAN'S RETIREMENT.

I referred in these columns some time ago to the impending retirement of Sir Archibald Campbell from the Chairmanship of the Stock Exchange Committee. Sir Archibald held hi' last Committee meeting on Monday and I understand that members of the Stock Exchange have presented him with a testimony in the shape of a replica of the qubtation " Sterne Porringer." A piece of jewellery has also been pre- sented to Lady Campbell. Few Chairmen have served the Stock Exchange for so long, or so effectively, as Sir Archibald Campbell, and certainly few, on their retirement, have evoked such a widespread demonstration of goodwill and affection.

A.IV: K.