GENERAL MINING AND FINANCE CORPORATION
THE annual general meeting of' the General Mining and Finance Corporation, Limited, was held in Johannesburg on June 6th.
Sir George W. Albu, Ban. (the chairman), who presided, said that the corporation's revenue earning capacity from investments, namely, dividends, interests, and fees, had been well maintained and the strong financial position disclosed was eminently satisfac- tory. The net profit earned for the year, at £526,578, was £1,021 below that of the previous year, but with a slightly higher carry forward of £132,149 from 1937, the total available profit, at £658,727, was £433 higher than that of the previous 12 months. For the third successive year the dividend distribution had been maintained at 25 per cent. Another 'sum of £2o0,000 had been allocated to general reserve, which brought the total of the reserve up to £i,00o,000, and £xo,000 had been allowed for taxation, leaving an amount of £132,583 to be carried forward.
Investments in stocks and shares in British. South African and other Government and municipal securities, including participa- tions, had been brought into account at the book value of £2,535,o98. All investments under that heading, for which share market quotations were available, appeared in the books at or under cost, but in no case above the market prices ruling at the end of the financial year. Consequently the aggregate market value of these items was, at the date of the balance-sheet, and still remained, greatly in excess of the book value.
In pursuance of the policy of greater collaboration with the Central Mining/Rand Mines Group, the latter company had pur- chased from the corporation during the year a large share interest in the West Rand Consolidated Mines, Limited, the whole of the proceeds of which had been utilised in the purchase by the cor- poration of 25,000 reserve shares in Rand Mines, Limited.
The Van Ryn Gold Mines Estate had milled an increased ton- nage during the year, but the working profit had decreased owing to a decline in recovery. Further advances had been recorded during 1938 in the operations at the West Rand Consolidated.
Although there had been an improvement in the native labour strength since the year end, the mine was still considerably below its requirements, and the full tonnage capacity of 220,000 tons per month could not be accomplished until the sepply showed a further increase.
Sir George, in dealing with the future of gold in relation to the world's currencies, said that it was impossible to prophesy with any degree of certainty, but quoted leading passages from the letter recently written by the Hon. Henry Morgenthau, Secretary of the United States Treasury, to the effect that the danger that gold would no longer be used as a medium of international exchange was so remote as not to merit serious consideration.
The report End accounts were unanimously adopted.
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