FINANCIAL NOTES.
Among the satisfactory reports of Industrial concerns aprominent place must be given to that of Nobel Industries, both the report and the statements made at the meeting being of an encouraging character. Quite the most remarkable feature of the -report, of Nobels is the skilful manner in which the consolidated balance- sheet covering all the Nobel interests has been com- piled. There are probably few bigger holding com- panies than that of Nobels, and consequently this task of compiling a compendium balance-sheet must be an extraordinarily difficult one ; and not only does the result reflect favourably upon the expert accounting, but it gives a lead to all other holding companies. For what has been accomplished in the case of Nobels should certainly be possible in the case of the smaller concerns. Nobel Industries, besides owning interests in companies not wholly controlled by it, has thirty-four other con- cerns whose balance-sheets are incorporated in the statement now produced. This statement shows the total assets of the undertakings at 124,684,280, while the liabilities amount to 18,428,176, revealing a surplus of £18,256,644 against an issued share capital of £15,892,988—a highly satisfactory showing.
In contrast to the report of Nobel Industries, the market was treated last week to one of a very different character, namely, that of the Northumberland Ship- building Company covering three years' operations to June 80th last. The balance-sheet shows that out of the total assets of £10,422,887 an amount of £8,819,703 is represented by shares in associated companies, con- cerning which the auditors append the following state- ment to the balance-sheet :- " We report that owing to the fact that the shares of the Associated Companies are not quoted on the market, and that recent balance- sheets are not available, we are unable to form a definite opinion as to the value of the investments in these companies as shown in the balance-sheet. In view, however, of the extreme depression prevailing in the shipbuilding industry, and that in several of the companies there are large issues of Debentures ranking before the shares, it would appear that the value of the shares at the present time is negligible.
The auditors further state that since the date of the balance-sheet the holding in the "Fairfield Shipbuilding and Engineering Company has been sold at a loss of £779,573. Perhaps the most favourable comment which can be made on the report is that it gives explanations with regard to the balance-sheet items, which, moreover, are given in greater detail than heretofore.
With every desire to sympathise with one of our leading industries at present under the cloud of excessive foreign competition, the City is inclined to question the wisdom of the efforts made by Bradford woollen and worsted manufacturers to secure a measure of Protection in view of alleged undue competition on the part of French and Belgium manufacturers. The competition itself is not questioned, nor is there reason to doubt that it is accentuated by the depreciated exchanges, though, incidentally, it must be noted that the workmen in France, while paid in francs, have their wages adjusted to a gold basis. There are, however, other factors in the situation which call for recognition. There is no doubt that the woollen manufacturmg industries here are being handi- capped by our Trade Unions restrictions as compared with the regulations in France and Belgium. When business was booming in Bradford members of the Trade Unions were not allowed to work the combing machinery more than two shifts of eight hours each in a day, and such were the profits at that time that employers were probably not keen upon enforcing a twenty-four hour day of three shifts. In Roubaix, however, no such restrictions were allowed to interfere with output.
* * * * These are points which the City thinks the wool industry here should take fairly into consideration before pressing for Protective measures. It is of the essence of the post- War financial problems that the belligerent countries, who have large external debts to pay, must spare no effort to produce cheaply and in large quantities with the object of swelling exports. This, however, can only be done by intense industry and simple living. By " Protection," however, the City believes not merely that the con- sumer in general would suffer, but the general slacking and restriction of output favoured by the Trade Unions would itself be encouraged when the very reverse
was required. A. W. K.
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