Financial Notes
- MARKETS RALLYING.
ALTHOUGH during the last few days the Stock Markets, in- cluding • the section for gilt-edged securities, have shown some recovery from the depression of the previous week, business has by no means recovered the briskness which was a feature of markets up to the close of last year. Saturday's oration by Herr Hitler may be said to have had little effect upon the markets either way, though perhaps there was some feeling of relief that the speech was not of a more aggressive and provocative character. On the whole, the tone is firmest, perhaps; at the moment in the more speculative departments such as those for Oil and Mining shares. Notwithstanding active trade, Home Railways are inclined to sag owing to un- certainty of the extent of Labour demands.
Quite the most interesting development of the past week has been the arrangement of fresh banking credits here for the French Government. For the Franc has been showing weakness for some time past owing to the lack of con- fidence on the part of the French public. At the same time, and largely as a result of the devaluation of the Franc last year, trade in France is improving, and there seems to be a fair hope that as the year proceeds the general economic position of the country will have become strengthened. It is, however, in the early months of the year that the financial requirements of the French Government are particularly large, and the Government's powers of borrowing from the Bank of France having been exhausted, banking credits were urgently required. These were finally arranged to the extent of £40,000,000.
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THE RICHARD THOMAS ISSUE.
Although the response on the part of the public to the recent issue of £7,000,000 in 4 per cent. Debenture stock in Richard Thomas and Co., the well-known coal and iron undertaking, was a poor one, considerable interest is taken in the project itself, which is an important one from the stand- point of domestic industry, and the chances afforded for increasing the numbers of employed. This point was brought out very clearly by Sir William Firth at the Extraordinary General Meeting last month when the scheme was submitted to and approved by the shareholders. There is to be a great extension of works at Ebbw Vale, where the Chairman stated they would have the most modern sheet and tinplate plant in the country, equal to any in the world, and they intended to work this new plant fully. Moreover, it must be remembered that this enlargement of industrial activities is taking place in a distressed area in Wales.
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TRUST OF INSURANCE SHARES.
The Progress Report No. 5 of the Trust of Insurance Shares Limited, which covers the fifth half-year of the Trust, is quite a satisfactory one. The current distribution amounts to 2.8458d. net per unit, which added to the distribution for the previous six months makes a gross yield of £3 13s. 11d. per cent. per annum on the original price of 19s. 9d. For the current year the managers estimate a yield of approximately 3} per cent. per annum gross. Since the inception, of the Trust, the original unit holders have received per unit an income of £3 15s, 3d., gross per annum, while the bid price on Janu- ary 1st, 1937, namely, 23s. ex dividend showed a net capital appreciation to the original unit holders of approximately lei per cent.
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GAS LIGHT AND COKE RESULTS.
The latest report of the Gas Light and Coke Company is an excellent' one. It shows that notwithstanding higher costs the sales of gas and residuals brought in a sufficiently larger revenue to increase the company's net profits. The coal bill was nearly £500,000 higher but gas sales rose and brought in £325,000 racirei stoire ' rentals £98,000 more and coke about £280,000 more. Thus, while the revenue from all sources rose by nearly £800,000, expenses were up by £780,000. With an increased net revenue of about £22,000, the directors were able to maintain the usual rate of dividend with an increase in the carry-forwaid of £10,554. A. W. K.
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