FINANCIAL NOTES

AMERICAN SPECULATIVE BUYING.

There are three directions in which there has lately been some rather significant buying on American account of specu- lative descriptions. Russian low-priced bonds have been bought on both sides of the Atlantic, apparently on the idea of more favourable developments, though whether some of this buying was in anticipation of the downfall of Trotsky it is difficult to say. But any material change in Russian political conditions might have a considerable effect for the reason that the natural resources of the country have never been questioned. Another direction in which American buying has been in evidence is the market for Mexican securi- ties, and in that case importance is attached to New York buying because, rightly or not, it is assumed that there is a better and earlier knowledge of developments in Mexico there than in this country. In the Oil section, too, the some- what steadier tendency of late has been associated with a little buying from America where it appears that stocks arc decreasing while consumption is increasing.

* * * * BANKING PROFITS.

Although some of the joint stock banks still have to issue their full reports, the profit statements which have been issued make an excellent showing, and in the case of the following seven leading banks it will be seen that in all cases there is a substantial increase for the year, the details being as follows :—

PROFITS.

1923.

1924.

Barclays ..

Bank of Liverpool and

1,891,000

• •

2,067,000 Martins ..

Lloyds .. • • 487,000 2,047,000

• •

••

530,000 2,469,000 Midland .. • • 2,211,000

2,425,000 National Provincial • • 1,791,000

1,974,000 Westminster .. • • 1;805,000

2,014,000 Williams Deacon's • • 327,000

339,000 ' Total ..

10,559,000 .. 11,818,000

It can scarcely be said that this rise in profits is very closely connected with a revival in British trade. All the same, an examination of the balance sheets shows that the increased profits can be attributed to a gradual return to more normal conditions. That is to say, the banks have been able to obtain a better yield on their resources in ordinary loans and advances than in the cramping confines of the Treasury Bill. Moreover, owing to the gradual improvement in trade and in the financial position generally, bad debts and heavy depreciation in securities, which were a feature of the years immediately following on the War, no longer figure in the annual statements.

* * * *

GLYN'S BALANCE SHEET.

A feature in the latest balance sheet of Glyn, Mills & Co., made up to December 31st last, is the very strong cash position, the balance at the Bank of England representing nearly 19 per cent. of the liability on Deposits, while if to the total of cash there is added the amount of money at call and the balances with and the cheques on other British banks, the ratio stands at over 44 per cent. There is also an expansion in the Deposits—which now stand at over £30,000,000—of about 2} millions.

* * * * SCOTTISH PROVIDENT RESULTS.

Few, if any, of the Life Insurance companies are failing to show good results on the past year's working, and some of the Scotch companies have done exceedingly well. In the case of the Scottish Provident Institution the main results for the past year may be set out as follows :—

1923 1924

No. of Proposals.

3,305 ..

3.407 ..

Gross Amount. £2,817,049 2.820.347

Reassured.

.. £340,011 ..

.. 239.500 ..

Net Amount. £2,477,038 2,580,847

In the matter of new business these totals do not include temporary insurances for upwards of £100,000 which were effected during the year to cover contingent bonuses allotted at the last investigation. It must not be forgotten, too, that the recent satisfactory results in the insurance world have been achieved in spite of considerable trade depression. Given an expansion in trade, both banking and insurance profits should benefit.

* *

RISE IN TOBACCO SHARES.

Among many strong features at the present time in the Industrial Market, the shares of the Tobacco companies stand out prominently. The strength of Imperial Tobacco during the past few days has been due to anticipations of a good dividend, the announcement of which will probably be made before this note appears. Meanwhile, the statements made at the recent meeting of the British American Tobacco Company were of a satisfactory character, and while the Chairman was reticent in making forecasts, he maintained, with some justification, that by the prudent policy adopted by the Board, the shares of the concern might fairly be said to have been brought into the category of the investment