FINANCE AND INVESTMENT
IT is god to find the Chancellor of the Exchequer setting his face against quack remedies for the so-called speculative boom in the stock markets. Sir Kingsley Wood must be as anxious as anyone to keep markets orderly, but that concern has not prevented ,him from laying the bogy of a Capital Gains Tax. A one-sided tax on stock-market profits without any compensation for losses would be unjust and illogical. If and when the Treasury should ever see fit to impose a tax on capital gains, I leel that it would not be confined to profits from share transactions and would follow the American example in making allowances for losses. Meantime, prices in Throgmorton Street are advancing slowly over a broad front which now covers gilt-edged. Terms of the new series of 24- per cent. War Bonds are a fresh reminder that the Treasury is still improving its borrowing position, if only very slightly.
ANGLO-IRANIAN INTERIM Hardy speculative investors who took the plunge many months ago and bought Angle-Iranian Oil as a recovery share have already seen a handsome rise in the market. Quoted earlier this year at 34s. 6d., the £i ordinary units now stand at 8os. Nor can they be said to be ever-valued in the light of the 5 per cent, interim just announced. When Sir William Fraser told stockholders in September that up to that date earnings in 1942 had shown "a material increase" over 1941, he gave a pretty clear indication that this year's dividend wouid be higher than the 74 per cent, paid for 1941. On the basis of the 5 per cent. interim, it seems reasonable to budget for at least io per cent., and a higher rate would not be surprising. Even if 124 per cent, is forthcoming, the yield at £4 is only just over 3 per cent., but that will doubtless be thought adequate by investors taking the long view. They will recall the dividends of 20 to 25 per cent, in force before the war, when the LI units stood over £5.
A STORES LOCK-UP
Some weeks ago I mentioned the 7 per cent. Second Preference shares of John Lewis, the Oxford Street stores, as a promising pur- chase for recovery. From 15s. they have risen to 2os., and dividend payments have been resumed. In the same group the Lt First Cumulative 5 per cent. Preferred Ordinary units of John Lewis Partnership now look to me an attractive lock-up hold:ng around us. 6d. The dividends are being paid at present, and none Can be forthcoming until the Partnership again receives income on its hold- ing of 600,000 John Lewis ordinary shares. The strength of the position is that only a very small payment on John Lewis ordinary, 1 which in pre-war days distributed dividends of between 8 and 12 per cent., is required to cover the 5 per cent, on the Partnership Pre- ferred shares. In -eviewing the prospects in April, the chairman expressed a confident view that after the war arrears of dividend oil the preferred shares will be cleared off quickly and the previous un- broken record of punctual payment maintained. Investors wita patience should find these shares a satisfactory holding for capitil E appreciition.
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