FINANCIAL ANSWERS
W. J. (Mon.).—You would do better to confine your invest- ments to the larger societies. The fixed trusts are the only medium I would recommend among the others.
H. B. K. (Wolverhampton).—There is no. reason to sell either the Midland Bank or Barclays Bank shares. Both should retain their price and offer a satisfactory investment. Bank profits should increase moderately this year.
H. S. (Birkenhead).—It is wiser to ignore circulars of the kind you mention and confine share transactions to recognised stockbrokers who are members of the London Stock Exchange or one of the provincial exchanges. The firm in question is not a member of any stock exchange.
A. B. C. (Wolverhampton).—(a) The bank and insurance trust units are the more attractive. (b) I advise selling the Gaumont-British 4i per cent. First Mortgage Debentures at today's price in view of the unsatisfactory financial positioa of the group.
R. J. C. (Belfast).—British-American Tobacco 5 per cent. cumulative La Preference shares should be suitable for your purpose. The price is 24s. 3d. and the yield £4 2s. 6d. per cent. The dividend is very strongly secured.
A. H. B. (Italy).—I cannot recommend a purchase of either of the shares. The earnings prospects of both companies are uncertain.
H. E. B.—In the light of the chairman's hopeful survey at the recent meeting, Jeremiah Rotherham ordinary shares should improve this year. The chairman forecast " better results than for several years " and a resumption of ordinary dividends.
J. D. M. (Edinburgh).—The position of the Canadian Pacific Railway was discussed in last week's issue. Both the preference and the common shares appear fully valued for the present. Fmo (Cambridge).—I see no reason to disturb any of your present holdings, all of which are sound in their class. For new investment I consider Lloyds Bank shares the most attractive of the three.
lams (London).—Scammell Lorries should turn out a profitable purchase. The company is working at full pressure on a profitable basis. Aspro shares might be realised.
GEAR Box (Beckenham).—Advise holding Morris Motor shares for the dividend due shortly. On the basis of a minimum payment of 45 per cent. the yield would be roughly 5/ per cent. at today's price. The company's sales are being well maintained.
MaCA (Herts.).—Would await a recovery in S.S. Cars but would sell London and District Cinemas. American Woolworth shares are depressed by the influence of rising costs, but now look attractive for yield and capital appreciation.
H. T. S.—Would dispose of both holdings in the Gaumont. British group and reinvest in Baldwin's 41 per cent. Prefer- ence which, at today's price of 20S. 6d., offer a yield of £4 3s. per cent.
A. M. (Hastings).—The company mentioned was the English Electric Company. I anticipate assumption of ordinary dividends with a minimum of 71 per cent. this year. Preference payments are now up to date.
A. B. (Lincoln).—Am not particularly impressed by the prospects of home railway ordinary stocks, although Southern Deferred and L.M.S. Ordinary appear the best. Gross income should improve further this year, but rising costs of labour and coal, &c., will reduce the net gains considerably.
CUSTOS.
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